The Wall Street Journal and Reuters believe they have discovered some negative news about Apple Inc. (AAPL). Like many rumors reported by the press, the accounts could be completely wrong, but without an ongoing flow of stories about Apple, the press loses one of its greatest attractions to readers. Stories about Apple are important, and whether they are accurate does not appear to matter.
The Wall Street Journal reported on iPhone C production:
Apple told its Taiwanese assemblers Pegatron Corp. 4938.TW 0.00% and Hon Hai Precision Industry Co. 2317.TW -0.41% that shipments of the iPhone 5C in the fourth quarter would be cut, the people said. Pegatron, which analysts say assembles two thirds of the iPhone 5Cs, was told orders would be cut by less than 20%, said a person familiar with the matter. Hon Hai, which assembles the remaining low-cost iPhones, was told orders would be cut by a third, said two people familiar with the matter.
Who are those "people familiar with the matter" and why are they talking?
Reuters reported about an iPhone order cut:
Apple Inc has told manufacturers of its new iPhone 5C that it will cut orders of the smartphone for the final three months of the year, a source familiar with the supply chain situation said.
Somewhere along that long supply chain from Apple's manufacturers to the consumer, Reuters believes it has found a bump.
The press often is wrong about Apple's products, which includes when they will be produced and launched, what their features will be, what sales are and what sort of shortages Apple faces due to astonishing demand.
There have been scores of reports about sales numbers for the two new iPhone 5 models. None of them is based on direct knowledge of Apple's numbers. Some say that iPhone 5C sales do not matter much. Many consumers, both in the United States and abroad, are willing to pay the premium for the iPhone 5S. That would seem to be a good thing. Apple is holding the top end of the market, whether Wall Street likes it or not.
There will be an ongoing flood of press stories based on speculation, or a few unnamed sources, as the time passes before the release of the iPhone 6. Some of these have to be right. However, some will be wrong, too.