Apple shares dive on rumors of weak iPhone 6s demand

Posted:
in AAPL Investors edited December 2015
Investors sent Apple stock sliding on Tuesday following reports that the Cupertino company may have been forced to dial back orders for its new flagship handsets due to lower-than-expected demand.


Apple Infinite Loop Campus


The news came courtesy of Credit Suisse, which slashed its full-year iPhone sales estimates for 2016 by 20 million units to 222 million. "We believe [the component] adjustments reflect a more subdued launch around the iPhone 6s/6s Plus in terms of uptake," the bank said, according to CNBC.

At press time, Apple shares were down 2.7 percent at $117.31 after falling by more than $3 from Monday's $120.57 close in pre-market trading.

"The cuts seem to be driven by weak demand for the new iPhone 6s, as overall builds are now estimated to be below 80 million units for the December quarter and between 55-60 million units for the March quarter," the note read.

Last month, Apple announced sales of 48 million iPhones in the fourth fiscal quarter of 2015. That represented a 22-percent year-over-year increase in unit sales.

Though it's not clear how much the iPhone 6s and 6s plus contributed to that mix, the devices did set a sales record in their opening weekend. Apple shifted over 13 million of the new handsets in the first three days of availability, besting the previous record of 10 million set by the iPhone 6 and 6 Plus.
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Comments

  • Reply 1 of 108
    wizard69wizard69 Posts: 12,627member
    OK whom out there believes this? I really don't know because I don't follow cell phone sales in general. This report though seems to come out of nowhere and is slightly at odds with what I do know.
  • Reply 2 of 108
    I know I am holding off the complete 6 cycle. My 5s works great and is too pretty to replace with that ugly dopey looking thing the 6/6s

    Looking forward to the 7 or maybe the rumored smaller one that is supposed to ship early next year,
  • Reply 3 of 108
    These remind of the rumors that said the Zune was sold out, and that the Surface Pros were sold out.
  • Reply 4 of 108
    Of course no one believes it. Until it becomes a federal crime for such BS they'll continue to do it and manipulate markets.
  • Reply 5 of 108
    mike1mike1 Posts: 1,749member

    Market manipulation by short sellers, plain and simple. Time to buy more.

  • Reply 6 of 108
    rogifanrogifan Posts: 10,669member
    wizard69 wrote: »
    OK whom out there believes this? I really don't know because I don't follow cell phone sales in general. This report though seems to come out of nowhere and is slightly at odds with what I do know.

    Somebody wants to drive the stock price down and they know anything about iPhone will do it.
  • Reply 7 of 108

    I believe it. It wouldn't surprise me. If I was in the market for a big phone I would go with the Note 5, Great screen, larger but with the same overall size , but far sexier. The 6 series is the worst looking iPhone to date. Which is a very shallow aspect, but lust-worthiness has always been an Apple feature. This time around it just looks like any other junk gadget. Like I said above, the Note 5 on looks alone is far more elegant than the dopey looking 6. I would go for it myself with how much they have discounted it recently, but instead will wait to see what the 7 looks like, and what features it has.

  • Reply 8 of 108
    These reports are never accurate and are usually based on a false premise-- that the initial built rate remains constant throughout the product cycle. Apple predicts CQ4 build rates and pretends they will order the same quantities in CQ1 and CQ2. They do this so adequate quantities are available at peak times and they don't have to deal with production shortages. I imagine they pay some penalty to reduce the rate, but it is an insurance policy.

    But, hey... if you were looking for a good opportunity to buy the stock, now you can get in 3% lower...

    (and 2018 Options... you can get $75 strike for $45! People must think the stock isn't going anywhere...)
  • Reply 9 of 108
    Me - "Hey Siri. Remind me to place a buy order for Apple."
    Siri = "OK, I'll remind you."
  • Reply 10 of 108
    rogifanrogifan Posts: 10,669member
    ingela wrote: »
    I believe it. It wouldn't surprise me. If I was in the market for a big phone I would go with the Note 5, Great screen, larger but with the same overall size , but far sexier. The 6 series is the worst looking iPhone to date. Which is a very shallow aspect, but lust-worthiness has always been an Apple feature. This time around it just looks like any other junk gadget. Like I said above, the Note 5 on looks alone is far more elegant than the dopey looking 6. I would go for it myself with how much they have discounted it recently, but instead will wait to see what the 7 looks like, and what features it has.

    You lose all credibility using words like dopey. Also there's zero evidence that high-end Samsung phones are flying off the shelves so obviously the public doesn't agree with you.
  • Reply 11 of 108
    Seems the perfect gimmick. Put this out, and buy cheap. Or they are already shorting he stock. I would guess a release like this type of thing is at least half manipulation.
  • Reply 12 of 108
    Quote:

    Originally Posted by Rogifan View Post





    Somebody wants to drive the stock price down and they know anything about iPhone will do it.



    Well this plays right into Apple's plans and their stock buy back. A few more years of BS like this and who knows. Apple Inc. may be majority share holder of AAPL.

    But I absolutely love their advice of Apple just having to make cheaper crap. 

    Gruber occasionally brings up stuff like this under the headline "Claim chowder". 

  • Reply 13 of 108
    herbapouherbapou Posts: 2,212member
    If they decided to launch the iphone 7 earlier they have to cut some iphone 6s orders.

    So basictly this means nothing
  • Reply 14 of 108
    bcodebcode Posts: 138member
    I wouldn't call a $3 downturn a "Dive", by any stretch of the imagination.
  • Reply 15 of 108

    There was a lot of pent up demand for a larger iPhone. I don;t think anyone ever described the look of the iPhone 6 as beautiful. Or at least not like the previous ones. The knee-jerk reaction to the 5s was always to describe it as sexy. 



    As far as the design of the 6s vs the Galaxy Note 5, I am not a fan of Samsung design but I would bet if you asked 100 designers to tell you which was physically nicer the Note 5 would easily come out on top.



    I was shopping at Target a few weeks ago and they had the older iPhone 6 and 6plus on sale for 1 penny, I was about to jump on that deal even though I hate the design fo the 6 but the Verizon models for a penny were sold out and they only had the at&t ones left. So they were discounting the hell out whatever stock of the older 6 was left.



    All I am saying is I think that the pent up demand for the 6 has been satiated and more discerning people like me where not going to be hauling around such a dopey looking thing with stripes on the back while we had perfectly good working and far cooler phones on our hands with the 5s. I just couldn't do it. I would rather wait and see what the 7 looks like.

  • Reply 16 of 108

    I just came up with a great idea that I have never see anyone mention before.

     

    Apple should go private.

     

    ;)

     

    In case it's not perfectly clear, I am making a joke.

  • Reply 17 of 108
    flaneurflaneur Posts: 4,468member
    ingela wrote: »
    I believe it. It wouldn't surprise me. If I was in the market for a big phone I would go with the Note 5, Great screen, larger but with the same overall size , but far sexier. The 6 series is the worst looking iPhone to date. Which is a very shallow aspect, but lust-worthiness has always been an Apple feature. This time around it just looks like any other junk gadget. Like I said above, the Note 5 on looks alone is far more elegant than the dopey looking 6. I would go for it myself with how much they have discounted it recently, but instead will wait to see what the 7 looks like, and what features it has.

    "far sexier" . . . "lust-worthiness"" — I think we're getting the message here, and it isn't pretty. No more details, thanks.
  • Reply 18 of 108
    Quote:

    Originally Posted by Flaneur View Post





    "far sexier" . . . "lust-worthiness"" — I think we're getting the message here, and it isn't pretty. No more details, thanks.

     

    Yeah, that Apple design has always been thought of as sexy and lust-worthy. That's what Steve Jobs brought to industrial design on consumer gadgets.

  • Reply 19 of 108
    techlover wrote: »
    I just came up with a great idea that I have never see anyone mention before.

    Apple should go private.

    ;)

    [SIZE=8px]In case it's not perfectly clear, I am making a joke.[/SIZE]
    That's amazing I was having the same thought!!
  • Reply 20 of 108
    This is so boring. We hear this every year at this time and some investors panic as always only to find out Apple has yet another all time high earnings for the quarter when all is said and done. They know Apple won't respond to this nonsense. Also, very interesting they kept there rating and price target the same and said not only to not sell but to buy on any weakness...so they can issue this report and buy the stock today to take advantage of the dip and claim they are doing exacting what they are telling you to do in the report.
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