iPhone 5 demand 'robust,' order cuts likely stem from improved yields & supplier shifts
While recent reports about iPhone 5 component orders being reduced have caused "great confusion," the reality is consumer demand for the iPhone 5 has not waned.
Analyst Shaw Wu with Sterne Agee revealed in a note to investors on Tuesday that his checks with suppliers indicate that demand for the iPhone 5 "remains robust." He's not concerned by recent reports that interpreted iPhone 5 order cuts as a sign of weak demand.
Wu joins a growing chorus of market watchers who believe any order cuts for iPhone 5 components are not representative of consumer interest. Mark Moskowitz of J.P. Morgan said the reports are just "more noise" that will prompt investors to overreact, while Maynard Um of Wells Fargo said any cuts are actually "not news."
For his part, Wu believes that reduced orders for iPhone 5 components are a result of improved yields, which has required Apple to place fewer orders for components. In addition, he said supplier shift changes made by Apple have contributed to the cuts.
With so much attention on Apple's future, Wu believes Apple's guidance for its March quarter will be the "trickiest" that he can remember.
He expects Apple will give "vintage conservative" guidance, as it has traditionally done. But while in the past investors would brush aside Apple's soft guidance, this time some may view the guidance as a sign of weak demand.
As for Apple's recently concluded December quarter, Wu expects iPhone sales and gross margins will likely surprise investors to the upside. His forecast calls for sales of 47.5 million iPhones, above market consensus of 46 million to 47 million, with gross margin of 38.7 percent, versus expectations of 38.3 percent.
Sterne Agee has a price target of $840 for AAPL stock, with a "buy" recommendation for investors. Apple will report its earnings next Wednesday, Jan. 23 ??a call that is viewed by some as the company's most important in 10 years.
Analyst Shaw Wu with Sterne Agee revealed in a note to investors on Tuesday that his checks with suppliers indicate that demand for the iPhone 5 "remains robust." He's not concerned by recent reports that interpreted iPhone 5 order cuts as a sign of weak demand.
Wu joins a growing chorus of market watchers who believe any order cuts for iPhone 5 components are not representative of consumer interest. Mark Moskowitz of J.P. Morgan said the reports are just "more noise" that will prompt investors to overreact, while Maynard Um of Wells Fargo said any cuts are actually "not news."
For his part, Wu believes that reduced orders for iPhone 5 components are a result of improved yields, which has required Apple to place fewer orders for components. In addition, he said supplier shift changes made by Apple have contributed to the cuts.
With so much attention on Apple's future, Wu believes Apple's guidance for its March quarter will be the "trickiest" that he can remember.
He expects Apple will give "vintage conservative" guidance, as it has traditionally done. But while in the past investors would brush aside Apple's soft guidance, this time some may view the guidance as a sign of weak demand.
As for Apple's recently concluded December quarter, Wu expects iPhone sales and gross margins will likely surprise investors to the upside. His forecast calls for sales of 47.5 million iPhones, above market consensus of 46 million to 47 million, with gross margin of 38.7 percent, versus expectations of 38.3 percent.
Sterne Agee has a price target of $840 for AAPL stock, with a "buy" recommendation for investors. Apple will report its earnings next Wednesday, Jan. 23 ??a call that is viewed by some as the company's most important in 10 years.
Comments
Meanwhile, the WSJ who foisted the ridiculous rumor about weak sales will continue to be cited by sites around the world and continue to be believed no matter what nonsense they publish.
geoadm, you're a dope
Happens all the time.
Apple is the most manipulated stock in history.
But all you have to do is to ride it - buy low, sell high.
Quote:
Originally Posted by greendisease
geoadm, you're a dope
Nope, just a troll
Quite frankly, the past three months has been depressing as an AAPL stockholder. That, on what will inevitably be their best quarter ever, which has positioned them well for long-term success. I do hope they announce that they completed the $10B buyback, reducing their float by 2%. It is about the only silver lining I can see at this point.
AAPL 490
There is clearly room for improvement in iOS. Some decisions that were clearly made in order to create an app marketplace have outlived their useful life. Others that force a rigid structure on use of the operating system (lack of spring board settings as an example) do limit functionality for the users who want it. The need to do an unsupported jailbreak to satisfy the desires of 15-20% of your customer base is idiotic on Apple's part. It is not the Apple Fans that prevent the change though.
That said, everything I can see suggests that Android has refined a few things, but has done little to truly innovate over the last two years. Both camps are pretty much stuck in a rut of what comes next. It is almost like expecting the next version of iTunes to be an actual improvement rather than a re-packaging of something that worked... without any real improvements.
The only things I see iOS really needing to fix is the whole "settings" interface, the lack of alternative input methods, and a native flashlight that chan be activated without using an app...
Now the beer is talking to ya?
Quote:
Originally Posted by geoadm
I though demand had slowed. Had I held an iPhone 5 before buying one I wouldn't have bought it. They are either badly made or badly designed. They rattle like a toy. I thought I got one that slipped through quality control and took too long to take advantage of my Apple Care and couldn't return it when a "Guinness" told me rattling is "normal". Ended up selling it privately and lost $500 in the process cause I got sick of anyone who was nearby when it rung asking me what's wrong with it. Hope the iPhone 5S?6 is better quality or ill have to decide between windows android or blackberry.
Sure it's not your your brains rattling? What a piece of garbage!
I was just kidding, but I guess I was right, anyway. AAPL down another couple percent right now.
Totally insane.
Quote:
Originally Posted by aaarrrgggh
There is clearly room for improvement in iOS. Some decisions that were clearly made in order to create an app marketplace have outlived their useful life. Others that force a rigid structure on use of the operating system (lack of spring board settings as an example) do limit functionality for the users who want it. The need to do an unsupported jailbreak to satisfy the desires of 15-20% of your customer base is idiotic on Apple's part. It is not the Apple Fans that prevent the change though.
That said, everything I can see suggests that Android has refined a few things, but has done little to truly innovate over the last two years. Both camps are pretty much stuck in a rut of what comes next. It is almost like expecting the next version of iTunes to be an actual improvement rather than a re-packaging of something that worked... without any real improvements.
The only things I see iOS really needing to fix is the whole "settings" interface, the lack of alternative input methods, and a native flashlight that chan be activated without using an app...
Android still has a lot of refinements to make. It's still lacks a lot of smoothness that iOS has had since day 1.
iOS needs a better settings interface, but as you said, Apple needs to bring some innovation that none of us are expecting with this next release.
Quote:
Originally Posted by geoadm
It's hasn't expired, but it doesn't extend the 15 day return policy. Yeah iOS autocomplete is usually flawless, not sure what happened
And so in real life, you'd throw away $500 instead of taking it to Apple for a fix or replacement? Seriously?
Quote:
Originally Posted by NelsonX
AAPL 490
At this point, I'd suggest wait till after they announce the earnings before trying to buy on 'dips'. Technically AAPL has been doing terrible.