Foxconn offered $12.6M government subsidy to stem layoffs linked to iPhone 6s order reduction, repo

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Comments

  • Reply 21 of 48
    josujosu Posts: 217member

    total said:
    first of all, Happy New Year to all! As for Apple, i cant imagine sales would go down 30% suddenly, with all that expansion. I have some stock since 2013, so im still in virtual profit, but ofcourse far away since $130 levels a year ago. If stock will drop under $100 (it will probably happen today) im ready to add more to my portfolio, so no big deal for me, patience is the king. 
    Agreed, but I bought in 2000 at less than $4 so in profits ever and ever since I don't know. Is a good cash cow for my with the dividend, nearly 40% over investment. So don't care anyway. But I agree with you in other area. Capex forecast is the best lead indicator of what Apple would make in the year and its capex forecast for 2016 signals grow, so hardly the company can fall off a cliff in sales, because the CFO, COO and CEO of any company sees much better and way before the future performance of their company than any analyst or reporter, that's for sure.
  • Reply 22 of 48

    As I posted elsewhere today about this report.

    "Classic simpleton speculation. Without knowing December quarter (FQ1/2016) results, it is impossible to forecast how much seasonal decline there will be in iPhones.

    Since March quarter 2012 unit sales have declined QoQ for both the March and June quarter, averaging a 15% drop in the March quarter, and a further 21% decline in the June quarter. Importantly June quarter results have averaged a 36% decline over December quarter results.

    Given that Apple maintains 5 - 7 weeks channel inventory, about half of any quarter's production is for the following quarter's requirements. Nikkei Asian Review's alarmist claim that iPhone production will drop 30% is well within historical declines, and is nothing to get in a twit about. It might actually be good news (if true)."

    radarthekat
  • Reply 23 of 48
    josujosu Posts: 217member
    To me it can be perfectly explained by the Chinese authorities worries of a hard landing of the economy instead of an unusual production cycle for Foxconn. Germany use this kind of trick in slowdowns keeping the workers in the company with part-time works and complementing their salaries with a reduced unemployment subsidy instead of going fully unemployed and having to get complete unemployment benefits. The company keeps skilled workers inside to readmit full-time when things improve and the government needs less tax-payers money for the unemployed. Seriously is obvious that China is in a bigger than expected slowdown so the Foxconn subsidy makes sense in that environment
  • Reply 24 of 48
    All of this gyration is simply a reflection (as is the case with China and it's macro numbers too) that markets get weirded-out when rumors, misinformation, and disinformation are not effectively countered. Markets simply assume there must be some truth to the bad news. 

    There is no option other than to forcefully counter such idiocy that has a severe consequence on the company's market value. That is an important part of a CEO's job description, and Cook is doing an incredibly poor job on that front. Especially for someone who's not shy about expressing his views. 


    edited January 2016
  • Reply 25 of 48
    "Piling on reports"

    "Citing sources"

    Proof??

    WHAT sources? From WHOM? Based on WHAT, exactly?

    Sounds like more nonsense with manipulative undertones.
    Do a Google news search on Apple and every other story is 'Apple cutting iPhone orders...' At this rate I suspect the stock will be in the $80s by the time Apple reports at the end of January. I'm just waiting for the does the board need to replace Tim Cook stories to start surfacing again like they did in 2013.
    If the stock happens to dip under $100, time to buy.
  • Reply 26 of 48
    All of this gyration is simply a reflection (as is the case with China and it's macro numbers too) that markets get weirded-out when rumors, misinformation, and disinformation are not effectively countered. Markets simply assume there must be some truth to the bad news. 

    There is no option other than to forcefully counter such idiocy that has a severe consequence on the company's market value. That is an important part of a CEO's job description, and Cook is doing an incredibly poor job on that front. Especially for someone who's not shy about expressing his views. 


    Unless we're all wrong and these rumors are true.
  • Reply 27 of 48
    jax44jax44 Posts: 79member
    Apple production down 30%, FUD production up 100%.
  • Reply 28 of 48
    ksecksec Posts: 1,569member
    Do a Google news search on Apple and every other story is 'Apple cutting iPhone orders...' At this rate I suspect the stock will be in the $80s by the time Apple reports at the end of January. I'm just waiting for the does the board need to replace Tim Cook stories to start surfacing again like they did in 2013.
    If the stock happens to dip under $100, time to buy.
    It will, likely touching $86.
  • Reply 29 of 48
    evilutionevilution Posts: 1,399member
    In the journalism world, Foxconn = Apple.
    Forgetting the hundreds of other companies that Foxconn create devices for.

    Apple cannot and does not sell the current iPhone continuously at a red hot maximum pace.
    Sales will always peak at the beginning, plateaux, and then drop away.

    Right at the beginning, Foxconn will need a lot of employees to create enough iPhones to do a sensible release.
    They will need to keep things going to catch up with outstanding orders BUT as soon as they are done and the device is available at the shops, Foxconn doesn't need to create 600,000 iPhones a day after the initial rush. That's not Apple doing badly (quite the opposite), it's just life.
  • Reply 30 of 48
    radarthekatradarthekat Posts: 3,867moderator
    Kraytinprime writes exactly, word for word, like sog35.  In his first message ever posted.  Hmm.
    singularitysuddenly newtonSpamSandwich
  • Reply 31 of 48
    Unless we're all wrong and these rumors are true.
    That is clearly what the market is assuming, like I said. 

    Speaking for myself as an investor, I cannot assume the rumors are not true. I don't know more than the market (or a reporter who's reporting on the issue for a serious publication) does. Apple has said nothing to counter it, so there's certainly that possibility. 
  • Reply 32 of 48
    The link below is from a contributor in WSJ.

    http://newpaper.dahe.cn/hnsb/html/2016-01/06/content_1352344.htm?div=-1

    The subsidy is a reward for 2014.  WSJ needs to do its research......
  • Reply 33 of 48
    singularitysingularity Posts: 1,328member
    Kraytinprime writes exactly, word for word, like sog35.  In his first message ever posted.  Hmm.
    I can't believe what you are implying!!!!

    There are two people like sog  :o :o :o
  • Reply 34 of 48
    quadra 610quadra 610 Posts: 6,757member
    Where is Tim Cook?

    The stock was $134 a few months ago. Now its almost $99. The stock is down almost 30% and almost $200 billion. Yet Tim Cook does nothing?  Why doesn't Tim Cook address these rumors?



    Because he knows that now is your opportunity to buy. 



  • Reply 35 of 48
    mtbnutmtbnut Posts: 199member
    Man, analysts and pundits are looking in every crevice in order to find an anti-Apple story these days! Here, I've got one: 

    "Farmers' children in western China are suffering due to the slowly dwindling amount of money Foxconn workers send back home due to the slowdown in iPhone 6s sales. Thus, Apple is killing children. SELL!" 
    edited January 2016
  • Reply 36 of 48
    latifbplatifbp Posts: 544member
    Kraytinprime writes exactly, word for word, like sog35.  In his first message ever posted.  Hmm.
    I hope it's Sog. I really do want him here.
  • Reply 37 of 48
    So was the market right about Enron?
    Was it right about Pets.com?
    Was the market right last year and the year before when we heard these same supply checks about Apple?

    The market is constantly 'wrong' especially when being 'wrong' is very profitable. 

    The problem here is Tim Cook refused to dispute these lies and rumors weeks ago when he could have nipped this in the bud. Instead Cook has allowed these rumors to fester for weeks. All this has done has empowered more liars and manipulators to come out of the woodwork to pile on. If Cook does nothing why not keep lying?
    Yikes. I hope you realize that two or three data points don't make "the market." The market is far more right than it's wrong. In the case of companies like Enron and Pets.com that you bring up, the facts were well-known for savvy investors to see and stay away. If someone didn't, that's their problem.

    In any event, your point is not terribly relevant to what I am saying, which is about whether and how companies have the ability -- and CEOs the obligation -- to try and provide the best possible information to markets so as to guide them to the right prices.
  • Reply 38 of 48
    jeffdmjeffdm Posts: 12,953member
    Where is Tim Cook?

    The stock was $134 a few months ago. Now its almost $99. The stock is down almost 30% and almost $200 billion. Yet Tim Cook does nothing?  Why doesn't Tim Cook address these rumors? All Cook needs to do is reiterate guidance for the December quarter and this would still be at $125.
    You're not fooling anyone by taking a new ID, Sog35.
  • Reply 39 of 48
    SpamSandwichSpamSandwich Posts: 33,407member
    ksec said:
    If the stock happens to dip under $100, time to buy.
    It will, likely touching $86.
    LOL! No. If it somehow dropped to $90 or below, I'd buy with every bit of spare cash at my disposal. It's dancing just above $100 right now.
    edited January 2016
  • Reply 40 of 48
    jeffdm said:
    Where is Tim Cook?

    The stock was $134 a few months ago. Now its almost $99. The stock is down almost 30% and almost $200 billion. Yet Tim Cook does nothing?  Why doesn't Tim Cook address these rumors? All Cook needs to do is reiterate guidance for the December quarter and this would still be at $125.

     You're not fooling anyone by taking a new ID, Sog35.
    I got some rude comment on my YouTube channel last night from a sog35

    How weird is that?
    edited January 2016 SpamSandwich
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