It's finally going under $500. Well under. Going to sink 6% tomorrow on this headline. This is the worst kind of news. Even a blowout earnings report can't overcome something like this. 50% cut in orders. Are the kidding?
This is not bad news. What the Wall Street Journal cleverly left out of the original Marketwatch story was that Apple had plans for ordering 65 million LCD panels this quarter between 3 vendors. There is absolutely no way they were planning on selling that many iPhone 5s. What probably happened is that they put in large orders at each vendor in case one or two of the vendors were having problems making the screens. Recall that Sharp was having all sorts of problems before the launch. Now that there is no problem with yields they are dropping their orders to meet demand which appears to be about 35 million. Considering that the 4 and 4S are still big sellers this means Apple anticipates selling at least 50 million phones this quarter.
Exactly. This may or may not create a buying opportunity before earnings, but it says nothing about demand. All demand indicators are positive, including IDC market growth reports, Apple market share reports, etc. Earnings are a week away and all the nonsense will end for a day and start all over again for the next quarter.