Apple shares dive on rumors of weak iPhone 6s demand
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.
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.
Comments
Looking forward to the 7 or maybe the rumored smaller one that is supposed to ship early next year,
Market manipulation by short sellers, plain and simple. Time to buy more.
Somebody wants to drive the stock price down and they know anything about iPhone will do it.
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.
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...)
Siri = "OK, I'll remind you."
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.
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".
So basictly this means nothing
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.
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.
"far sexier" . . . "lust-worthiness"" — I think we're getting the message here, and it isn't pretty. No more details, thanks.
"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.