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While RBC and Wells Fargo talk up Apple's (AAPL +2.9%) Chinese sales, Wedge Partners and Merrill...

While RBC and Wells Fargo talk up Apple's (AAPL +2.9%) Chinese sales, Wedge Partners and Merrill try to soothe concerns about iPhone order cuts (I, II). Wedge claims Apple has raised its FQ2 iPhone 5 production forecast by 10%-15% from conservative levels. Merrill suggests order cuts talk largely relates to displays, and that checks with other suppliers indicate only a seasonal drop. Still, the firm is lowering its FY13 iPhone forecast to 162M units from 170.5M, citing "a tepid US/Europe consumer and aggressive promotions [presumably for rival products] at US retailers."
Comments (12)
  • BUY APPLE IF YOU WANT THE CREAM OF THE CROP. If you can't afford it talk yourself in to believing that the other product for the money is just as good but really after trying both you know its not.
    18 Dec 2012, 06:23 PM Reply Like
  • Agree w/ beach, but today you don't need money if you can get 2yr contract. iPhone 4 is cheaper, but obviously superior, to most current Samsung plastic phones. Enjoy the best, you deserve it.
    18 Dec 2012, 07:22 PM Reply Like
  • uhh no. Nokia 920 is actually better than both.
    19 Dec 2012, 12:07 AM Reply Like
  • Apple cuts deal of a lifetime with Wal-Mart getting them to subsidize phone further
    by equityrich . 11 minutes ago . Permalink
    Seems people do not understand on Wall Street and why should they. Sit on your ivory tower and read headlines. You have to get in the trenches. Apple did not cut the iPhone price. The retailers did. Apple just allowed them to do so without losing any margin or price concession. They cut a sweet smart deal with Wal-Mart so they could sell it as a loss leader to get people into the store. Apple did not discount to Wal-mart. Apple wins here. They sell a unit at their same wholesale price.

     

    Now other retailers are forced to do the same. Apple is genius here. They get their phones into the market and subsidized further by the retailers. Why people don't understand this amazes me.

     

    Imagine this. Apple iPhone 5 now free at WalMart. All sizes and models. How would that move units? Pretty good right? well what if apple still made the same money in this arrangement that they were making when the phones were $199 and up? Pretty good. This is no different from carrier subsidy except now Apple got the retailers to play ball with them.
    18 Dec 2012, 07:46 PM Reply Like
  • You got it right. People are not that smart. That is good for us, more money to be made ;)
    18 Dec 2012, 08:17 PM Reply Like
  • Wallymart the holy grail of moving large numbers of product.
    18 Dec 2012, 08:58 PM Reply Like
  • get real
    Walmart will pay $70 from its own pocket ? Walmart who squeezes each company to death for cents?
    They would pay $70 hoping to bring someone into a store to buy a discounted shirt for $7?
    LOL

     

    The truth is Iphone 5 is not selling well. Market is saturated. They have no choice but to slash their prices
    18 Dec 2012, 09:37 PM Reply Like
  • "Apple did not cut the iPhone price. The retailers did."

     

    I´m pretty sure that you have no source to verify this?
    Correct?
    19 Dec 2012, 04:14 AM Reply Like
  • I appreciate these comments here. This stock has sold off on rumors of poor numbers. RUMORS!
    These rumors are being put out by wall street analysts that have to follow the leader for fear of ending up in litigation. I do not trust these guys one bit. Are they not the same folks who led us into the 2008 meltdown?
    The crowd forgets that the I-phone 5 was launched with about 3 days left in the 3rd quarter. This gave the short sellers the perfect opportunity. The I-phone 5 numbers and I-pad mini numbers will show up this quarter.
    Apple is a great company with a now very low PE ratio.
    Wal Mart will sell millions of phones, as a loss leader. Apple only benefits from this.
    China just came on-line in the last couple of weeks!
    Long AAPL!
    18 Dec 2012, 08:26 PM Reply Like
  • i have no android experience, but I can say this--AAPL customer service is so fantastic and personalized that I would pay even more to stay with AAPL. The help one gets is without compare.
    18 Dec 2012, 09:57 PM Reply Like
  • The whole discussion is irrelevant to someone who makes a living doing securities analysis. So don't try to take any of the above reasoning to the bank.
    19 Dec 2012, 12:00 AM Reply Like
  • As an investor, it is difficult to make a reasonable estimate of future earnings. The competition is here and price conscious buyers will buy even cheaper Chinese hardware.

     

    I agree that as time goes along, a new product can sustain the revenue increase. We have to look at AAPL not as IBM or XOM where steady increase in profits and revenue is expected.

     

    In AAPL this can not be assured past one or two quarters. Price this fact into P/E ratio etc...
    19 Dec 2012, 08:16 AM Reply Like
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