Sterne Agee's Shaw Wu does his best to defend Apple (AAPL -0.2%) in the face of its recent...

Sterne Agee's Shaw Wu does his best to defend Apple (AAPL -0.2%) in the face of its recent selloff. Supply chain checks indicate iPhone 5 demand remains strong and production appears to be improving, though Wu thinks lead times remain fixed at 3-4 weeks. He believes a consensus for 17M-18M FQ4 (Sep. quarter) iPad sales could prove high, but argues there could be upside to FQ1 estimates thanks to the iPad Mini. (Nomura)

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Comments (19)
  • Positive Equity
    , contributor
    Comments (476) | Send Message
    Hello iPad mini. :)


    Who wants a cute little iPad for their kids and relatives for Christmas?? About half of America.
    9 Oct 2012, 01:25 PM Reply Like
  • nungster
    , contributor
    Comments (128) | Send Message
    I agree. I hope the price point comes in around $200-$250. we got to get them in the iOS eco system. Bwa ha ha ha!!!
    9 Oct 2012, 01:37 PM Reply Like
  • trader2009
    , contributor
    Comments (456) | Send Message
    Apple love comes from investors, no longer consumers, and its conditional love. Just watch how wall street turns on its darling when its technicals start to break down.


    Apple's price is based on infinite demand from a horde of affluent consumers that is dwindling along with the labor participation rate. Without this fantasy demand Apple is like a Bose or other boutique electronics purveyor.


    There's no reason to upgrade once you have a smartphone that works, playing with apps all day quickly fades. The iPhone 5 is basically the iPhone 4. No one is that impressed.
    9 Oct 2012, 02:13 PM Reply Like
  • rocback
    , contributor
    Comments (1098) | Send Message
    Not according to Consumer Reports that just came out with it's rating saying that the 5 is the best I phone ever.
    9 Oct 2012, 02:26 PM Reply Like
  • Poloman
    , contributor
    Comments (29) | Send Message
    Can u name a large cap stock with better fundamentals than aapl
    9 Oct 2012, 02:37 PM Reply Like
  • Rbongni
    , contributor
    Comments (34) | Send Message
    "Apple love comes from investors, no longer consumers"

  that why consumers are buying iPhone 5s faster than Apple can manufacture them?
    9 Oct 2012, 06:43 PM Reply Like
  • berylrb
    , contributor
    Comments (2373) | Send Message
    I didn't know that rocback, so I checked it out, you're right,

    10 Oct 2012, 01:01 AM Reply Like
  • Covingtonium
    , contributor
    Comments (490) | Send Message
    Definitely a pretty dumb comment. Yours, not mine.
    16 Oct 2012, 04:56 PM Reply Like
  • Sal Marvasti
    , contributor
    Comments (1354) | Send Message
    Apples on a downtrend. If you haven not seen one look at the previous favorite Intel.
    9 Oct 2012, 03:07 PM Reply Like
  • Covingtonium
    , contributor
    Comments (490) | Send Message
    Ok. Are you short then?
    16 Oct 2012, 04:57 PM Reply Like
  • Sal Marvasti
    , contributor
    Comments (1354) | Send Message
    Ipad mini = suppressed margins.
    9 Oct 2012, 03:08 PM Reply Like
  • tigersam
    , contributor
    Comments (1707) | Send Message
    ipad mini = kindle into fire.
    9 Oct 2012, 03:31 PM Reply Like
  • DanoX
    , contributor
    Comments (3469) | Send Message
    Nexus 7 into fire.
    9 Oct 2012, 04:17 PM Reply Like
  • dook
    , contributor
    Comments (67) | Send Message
    There has to be a large number of short sellers in AAPL, and they are busy on line to poor mouth the company. When the current sinking spell reverses course, the stock could move up very fast. It's not the fundamentals that are hurting the stock; it's Casino.
    9 Oct 2012, 03:10 PM Reply Like
  • bjnflicks
    , contributor
    Comments (4335) | Send Message
    Shorts are liars. Claiming Apple;s best days are behind it, can't compete with samsung, etc. They said the same thing after Jobs died and that was one of the best buying opportunities ever. So short lies are really a good contrarian indicator. If they were really confident about Apple's demise, they would not have to make up lies, theyu'd actually post facts, like numbers which are real. But they do, do they? Even last quarter's "miss" was just a temporary product cycle slowdown. So that 35 point drop was also a great buying opportunity. So is this one. So are all of them until at least $800.
    9 Oct 2012, 04:29 PM Reply Like
  • bjnflicks
    , contributor
    Comments (4335) | Send Message
    Warning to shorts, you are going to lose big if you hang around. You had your chance this morning for a rare opportunity to scalp a nice downside profit on the best most undervalued major stock in the world.
    I bought at the very low of the day, on margin, because I am 100% certain AAPL doesn't belong at these levels and that the so-called "bad news" has been either wildly over-hyped or turned out to be no big deal. No more CHina riots. Maps aps problem no worse than "antennagate" which turned out to be a small temporary problem. No real supply line problems. As Wu says in this article, and he knows what he is talkinjg about, Apple has planned it this way. They get paid upfront for every iPhone or mini, and then they deliver when they deliver, between 1-21 days. In my neighborhood the wait is 24 hours. But even if it is 3 weeks, my local Apple store manager told me he hadn't witnessed a single customer who was angry or wanted to switch to Samsung. Every since one wanted an Apple and is willing to wait. So, bottomline, all these so called big "problems" amount to a hill of beans. They don't affect growth, revenue or earnings whatsoever. Or maybe 1% at the most. And the stock was already undervbbalued at $700, so now it is idrt cheap. BTW, the CNBC report from China today assuring viewers there are no supply line problems in China was the bottom. From there, it went up 14 points to close almost even. Now since Alcoa just beat the street, I anticipate a short covering rally and gradual recuperation into earnings, which should be a lot better than pessimists think. After all, they have about 17 days of iPhone sales earnings and remember Apple gets paid upfront whether they actually deliver the phones quickly or not. And next quarter should be the biggest and best in world corporate history - by far. So why would anyone short this stock now? Shorts got lucky in the past week, but the opportunity is over. From here on, it is all upside. I expect to leave the 600's permanently within 2-4 weeks.
    9 Oct 2012, 04:27 PM Reply Like
  • John1138
    , contributor
    Comments (161) | Send Message
    Shorts King Kass is probably giddy he got out in 2007 at "topped out" $90.




    9 Oct 2012, 04:38 PM Reply Like
  • ijshearer
    , contributor
    Comments (132) | Send Message
    nice one John1138
    9 Oct 2012, 05:14 PM Reply Like
  • KenNagle
    , contributor
    Comments (291) | Send Message
    Apple is a strong buy at current price. Among other positive factors cash is continuing to build at about $1 billion per week. Building cash will continue even if in the unlikely scenario that Apple experiences no growth.
    9 Oct 2012, 05:30 PM Reply Like
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