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Apple's (AAPL) shares are -3.4% premarket following reports that the company has cut iPhone 5...

Apple's (AAPL) shares are -3.4% premarket following reports that the company has cut iPhone 5 component orders for calendar Q1 due to weaker-than-expected demand. That's possibly helping to depress sentiment on the stock-futures market, with the Nasdaq benchmark -0.4%. The Dow is flat and the S&P is +0.1%, while Europe remains mostly in the green.
Comments (60)
  • I hope AAPL steps out from under the cone of silence to address this. Allowing comments like this to drive the price down 4% is not exactly what you'd call a shareholder-friendly approach.
    14 Jan 2013, 06:27 AM Reply Like
  • I couldnt agree more. What is Tim Cook doing?
    14 Jan 2013, 06:46 AM Reply Like
  • When I woke up this morning and saw the Nasdaq futures down so much I immediately went to check what was wrong with AAPL. Once I saw the news I was like "Oh well, AAPL never comments on this stuff, so I guess the rumors will keep going until earnings are out." This is the way Steve Jobs was and so far Tim Cook has kept that policy.
    14 Jan 2013, 07:56 AM Reply Like
  • Here is a good response. Not from Tim but from The Street

    14 Jan 2013, 08:35 AM Reply Like
  • Kramer is pounding Apple daily with regurgitations of silly articles about kids not likeing Apple. It almost like he is trying to hold it down until the Jan options expire worthless.
    14 Jan 2013, 10:06 AM Reply Like
  • Nobody likes Apple anymore. It's over. Remember the iPhone 5 launch in China? Only one person was in line. Thankfully that one person bought 2 million phones, but still, it's a bad sign.


    I've never been a big believer in coordinated manipulation but I have to say I think we're seeing it here. Apple doesn't help things by refusing to comment on rumours, no matter how ridiculous.
    14 Jan 2013, 12:02 PM Reply Like
  • Why would earnings change anything?
    14 Jan 2013, 01:07 PM Reply Like
  • If Apple was moving sourcing it would have to order first from current supplier, then once new production source was qualified ready, reduce orders with current suppliers. Is there any other prudent way to move production.?
    14 Jan 2013, 06:29 AM Reply Like
  • buying opp, or avoid ?


    The media scaring retail investors again?
    14 Jan 2013, 06:45 AM Reply Like
  • I have been thinking for some time that the 'wash out' price will be around $475. We might get there after hours when some can't trade it, and then we start the 'chase it higher' syndrome all over again.
    14 Jan 2013, 07:02 AM Reply Like
  • AAPL suppliers are contractually prohibited from saying ANYTHING to the press in these regards. The story is bogus and so is the Main Stream Media.
    14 Jan 2013, 08:36 AM Reply Like
  • Another negative report before earnings - no surprise.


    Aren't Apple's profits greater than Microsoft, eBay, Google, Yahoo, Facebook and Amazon COMBINED.


    Aren't Apple's profits double that of Intel, IBM, HP, Lenovo, Dell, Asus and Acer.... COMBINED.


    Didn't Apple make more money than samsung and google combined last quarter?
    14 Jan 2013, 06:54 AM Reply Like
  • So what you're saying is, the only way is down?
    14 Jan 2013, 04:15 PM Reply Like
  • I am glad that every possible doomsday scenario is being priced-in. Wonder what else is left.
    14 Jan 2013, 07:00 AM Reply Like
  • Tim develops a cold.
    14 Jan 2013, 02:31 PM Reply Like
  • Potential reasons for "supply cut":


    1. iPhone 5S orders are now being place, with production being shifted.
    2. Blowout Q1, with supply actually meeting demand for once, and Apple is simply doing due diligence by reducing orders.
    3. The world is ending.
    4. Numbers are being exaggerated and/or only certain suppliers are seeing cuts. Maybe Apple wasn't happy with what they were producing and have shifted supply elsewhere.
    5. China Mobile deal was assumed for Q2, didn't happen, and now cuts are being made.


    It's absolutely insane to trade this way on unsubstantiated claims.
    14 Jan 2013, 07:11 AM Reply Like
  • You hit it on the nail with point 5. I think they expected China Mobile deal by now. This has not materialized so cutting back on production. 2nd quarter sales will still be huge and more that last year.
    14 Jan 2013, 07:29 AM Reply Like
  • Fully agree - and by now the situation is so fuzzy, I have no idea what will happen after the earnings:
    - Blowout - AAPL down -> negative outlook/expectations, sell on good news
    - Blowout - AAPL up -> as expected
    - "Analyst miss" - AAPL down -> as expected
    - "Analyst miss" - AAPL up -> not as negative as what was priced in


    We are at the point where anything could happen :-)
    14 Jan 2013, 07:45 AM Reply Like
  • One of the largest cap companies in the world; more analysts covering this company that any other.


    And yet, which could be the case with this story today, the analysts don't come within a mile of getting the estimates correct.


    How difficult can it be to count widgets?
    14 Jan 2013, 08:02 AM Reply Like
  • Perhaps new displays from Innolux with "in-cell"- technology will replace displays for 5s. Here a report in German:
    14 Jan 2013, 08:07 AM Reply Like
  • Bear
    Anyone who can count would not be an analyst. they could get a real job
    14 Jan 2013, 08:33 AM Reply Like
  • Their job is not to count widgets. Their job is to take your money.


    If that means telling you the stock is going to $1000 when it's already at $700, that's what they'll do. if that means pushing it down to $350, they'll do that too.
    14 Jan 2013, 12:47 PM Reply Like
  • If indeed there was a supply cut of this magnitude then would that not have been a 'significant event' that required reporting to 'the Street'? Otherwise would they not be bucking their fiduciary duty.
    14 Jan 2013, 07:27 AM Reply Like
  • How would the people reporting the supply cut know it was due to lower than expected demand? Lower than what?


    This garbage is being reported as pure fact on CNBC.


    Pure nonsense.
    14 Jan 2013, 07:43 AM Reply Like
  • Lower than what AAPL had projected, which means they have a leak fairly high up in the org. I tend to agree with you, scare tactics. I have thought the market was rigged for some time, it could be the hedge funds trying to short the stock ahead of results.
    14 Jan 2013, 08:00 AM Reply Like
  • So far, what we know of demand is HIGHER than the company has projected publicly. The 'demand' portion of this story is key, and it is the portion that is based on inuendo. CNBC guest just said WSJ "confirms" that cuts are due to drop in demand. He's a liar. WSJ confirmed no such thing.
    14 Jan 2013, 08:43 AM Reply Like
  • Confusion, confusion, confusion. Apple will still blow out its quarterly numbers. Get in where you fit in, but caveat emptor!
    14 Jan 2013, 07:41 AM Reply Like
  • Anyone reading all these 1-comment posters in support of Apple should take note of the level of bullish desperation.
    14 Jan 2013, 01:08 PM Reply Like
  • i agree that these 1-comment posters are fishy heh. But to call AAPL needing some kind of desperate bullish support is a stretch. This isn't NOK or RIMM we are talking about now.


    AAPL is doing fine as a company. It is just incredibly over-analyzed. Eventually the share price will settle where the market wants it to. There is definately a back and forth between the bull and bears going on in terms of the share price.
    14 Jan 2013, 01:42 PM Reply Like
  • It is really a scare campaign so the big shark can eat up the small fish on the market. The media are load of lies and putting out false messge to drive the market direction which favor someone internal - Market maker...
    14 Jan 2013, 07:46 AM Reply Like
  • Could just be a new phone in March.
    14 Jan 2013, 07:46 AM Reply Like
  • Surprise surprise, look what article came out one year ago for the 4s, and it preceded blowout earnings:

    14 Jan 2013, 07:51 AM Reply Like
  • Henry Blodgett. Didn't he get banned for some sort of stock manipulation from the SEC?
    14 Jan 2013, 09:20 AM Reply Like
  • Just another Oops for those who thought AAPL around $700 was an awesome investment. :-P
    14 Jan 2013, 07:58 AM Reply Like
  • That's just plain ignorant.
    14 Jan 2013, 08:05 AM Reply Like
  • No reason to cover short. AAPL still has lot of room to fall. Short.
    14 Jan 2013, 08:23 AM Reply Like
  • 90 day EMA. Since 04 $AAPL under this EMA 1 TIME ~ 28 weeks- sept 08 - Apr 09. That was a crisis. $AAPL screaming buy @ 500 USD.
    14 Jan 2013, 08:27 AM Reply Like
  • cHECK
    <img src="" border="0"/>
    14 Jan 2013, 09:07 AM Reply Like
  • Just in case you don't know,
    AT 10:20 LAST NIGHT, WSJ REMOVED THE COMMENT "DUE TO WEAKER DEMAND THAN EXPECTED" from Apple article because absolute lack of evidence. But the news was already sparked everywhere and damage was done. Since when WSJ is publishing cheap rumors without reasonable support? Same happened last week with cheap iphones note.
    Now, Apple stock is being seriously impacted in pre-trading and also WSJ reputation.
    Should WSJ apologize to Apple?
    14 Jan 2013, 08:35 AM Reply Like
  • Kramer and folks on CNBC are citing every negative thing they can find on Apple. There is some severe manipulation going on here.
    14 Jan 2013, 10:10 AM Reply Like
  • Who cares. Buy more if you have the courage.
    14 Jan 2013, 12:45 PM Reply Like
  • Here's the thing: AAPL products are being cannibalized by Samsung and Google AND AAPL hasn't put out anything innovative in quite some time. Their latest products have been an upgraded iPhone with a crappy map app and the iPad mini which is eroding their profit margins. AAPL is now playing catch up to others in terms of innovation. I really don't see much upward momentum for AAPL.
    14 Jan 2013, 08:44 AM Reply Like
  • Then you probably shouldn't buy the stock. But thanks for coming here and regurgitating all the BS FUD that's been spread around ad nauseum.
    14 Jan 2013, 09:07 AM Reply Like
  • You're quite welcome. For the record, I've been regurgitating those comments since the stock was ramping up to $700. Now that its down to $500, I still ain't buying.
    14 Jan 2013, 09:10 AM Reply Like
  • Like the man said, you are a shill!!
    14 Jan 2013, 12:35 PM Reply Like
  • How am I a shill for stating the obvious?
    14 Jan 2013, 01:09 PM Reply Like
  • You expect Apple to re-invent the wheel every 6 months???? Ridiculous!
    Yeah, Google comes out with Android, then gives it away to Samsung, et al, in an effort to torpedo Apple. This started when the Google CEO was sitting on the Apple BOD.
    14 Jan 2013, 02:34 PM Reply Like
  • Didn't an analyst on SA comment about all the bullish articles and positive comments about Apple lately? Figured you guys would get us back on track. "Restart the bashing engine boys! Full speed ahead to January 19, we have work to do!"
    14 Jan 2013, 09:00 AM Reply Like
  • Well the "max pain" peg is around 550 for Jan '13 option. I guess we will see if on Friday the stock shoots up mysteriously to 550 before lunch.
    To me this will be a great test of "max pain" theory mainly because:
    1. It's the largest cap company in the world
    2. The number of option expiring in Jan '13 are just enormous.
    (If this doesn't pin the stock, then nothing will.)


    If this makes one group (calls / puts) hugely rich then I think the max pain theory may need some tweaking.
    14 Jan 2013, 10:11 AM Reply Like
  • Are you certain about that?
    14 Jan 2013, 10:55 AM Reply Like
  • How about pollution in China and the mandatory shutdown of production lines?
    I guess pollution is not apart of economics, just look at a youtube video of Beijing.
    14 Jan 2013, 12:43 PM Reply Like
  • Daniel Radakovich: Guess you don't know your geography.
    14 Jan 2013, 08:24 PM Reply Like
  • I'm surprised that the volume is as low as it is. Seems not many are selling on the "news"?
    14 Jan 2013, 01:00 PM Reply Like
  • Low volume also means there are not many investors interested in the stock, even at these lowered prices.
    14 Jan 2013, 01:11 PM Reply Like
  • Just sold most of my JAN 525 puts in AAPL at $503 Now I am very long AAPL. Today's news looks like a good buying opportunity. Two months ago AAPL was under severe pressure to produce iPhone 5's so they ordered 65 million units to ensure adequate supply through the Christmas shopping season, even though analysts expect only 45 million. Why shouldn't they have over-ordered? They certainly have the money to do so. It is totally logical to cut orders for next quarter to ~ 32.5 million. Did anyone ever expect more than $97.5 million iPhones during both quarters in the first place ???
    14 Jan 2013, 01:04 PM Reply Like
  • Wow! AAPL shareholders have the thinnest skins. You people act as though AAPL is the only company that has ever had anything negative printed about them. If the criticisms are just rumors or are not valid, then you shouldn't have anything to worry about. The earnings will dictate the long-term price of the stock, not any day-to-day rumors or news stories. Every stock in the market is open to criticism and false rumors. Stop thinking you and AAPL are so special. You're not.
    14 Jan 2013, 01:08 PM Reply Like
  • Lotsa folks put all their eggs in the AAPL basket. And talked down to pretty much anyone telling them to diversify...
    15 Jan 2013, 10:26 AM Reply Like
  • Yes, I agree. I do know people like that. They thought the only direction AAPL could go was up. Let them eat beans!
    15 Jan 2013, 10:31 AM Reply Like
  • One of the highest open interest levels in history is about to expire on Friday and everyone acts surprised that the share price is being pushed down. I looked at Apple's pre-market chart this morning and just sort of rolled my eyes and said 'here we go again'.


    The company probably plans to launch an iPhone 5s or the next generation sometime in the next 6 months so naturally orders will be cut at some point. You can make a comfortable living just on the overreacting irrationality of the investing populace.
    14 Jan 2013, 02:21 PM Reply Like
  • My take on the news of the component cut:

    14 Jan 2013, 04:01 PM Reply Like
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