- Tools for Investors
- Stock News
- Investing Ideas
- Econ & Policy
- Personal Finance
Reports that Apple (NASDAQ:AAPL) had cut iPhone 5 component orders after seeing lower-than-expected demand for the device caused “great confusion” among investors, but they were not accurate, Sterne Agee analyst Shaw Wu said.
Wu wrote in a research note to clients on Tuesday that he wasn’t buying the idea that cuts in components were a consequence of waning demand. Instead, reduced orders more likely hinted at improved yields. “We believe there is great confusion with press reports of order cuts and weak demand,” Wu wrote. “From our understanding, the reason is two-fold: (1) much-improved yields meaning lower component builds and (2) supplier shifts. As far as we can tell, iPhone 5 demand remains robust.”
Should you buy or sell Apple’s stock ahead of earnings in a few days? Our 20-page proprietary analysis will help you save time and make money. Click here to get your SPECIAL REPORT now.
The company’s share price slipped below the $500 mark on Tuesday morning and could not recapture $500 by the time the closing bell sounded. Apple closed down 3.15 percent today after falling 3.6 percent on Monday on reports that it was seeing low iPhone demand. Tuesday’s fall to $483.38 was the stock’s lowest point in 11 months. Here’s a chart that shows just how deep the plunge over the last two days has been:
Don't miss one of the biggest bull markets in history! Covers Gold, Silver, Gold & Silver stocks, and miners.
There's always a bull market in some sector! Find the best opportunities in commodities.