As CNBC notes, Apple’s stock is seeing a noticeable afternoon dive following a supply chain report that iPhone production will remain reduced from April through June. Nikkei Asian Review issued the report earlier today:
Slow sales of the flagship iPhone 6s and iPhone 6s Plus, which debuted last autumn, have forced Apple to adjust inventories. It lowered production for the January-March quarter by about 30% from the year-earlier period. With sales still sluggish, the U.S. company has told parts suppliers in Japan and elsewhere that it will maintain the reduced output level in the current quarter.
Apple issued guidance earlier this year to expect a slow down in iPhone sales during this quarter for a number of reasons. The latest supply chain report highlighting continued reduced iPhone production further suggests that sales in the following quarter may remain relatively underwhelming for Apple.
Apple opened at 112.11 points this morning, then fell two points to 110.03 by the afternoon period in a sharp dive. CNBC notes that Apple’s stock wasn’t the only thing impacted. Apple suppliers Skyworks Solutions, Qorvo, and Broadcom each saw dives on the market following the report as well.
Nikkei cites parts suppliers that received news of Apple’s updated plans in reducing iPhone production for the April through June quarter. The report highlights that Apple won’t produce enough iPhone SE handsets to offset reduced iPhone 6s and iPhone 6s Plus sales, although that could be based on demand of course. There’s also a nugget suggesting the next flagship iPhones could debut sooner than the September timeframe to address sales, although evidence of this hasn’t surfaced if true.
Apple apparently does not plan to produce a large enough volume of the small iPhone SE released last month to offset the slump of its flagship series. However, should Apple decide to release its next flagship model earlier than the usual September launch, parts production for that smartphone could take off around late May.
Earlier this week, however, we published our roundup of everything we know about the next generation iPhones so far. One thought that comes to mind here is that annual iPhone upgrade programs including Apple’s own would need to adjust for a next-generation model debuting ahead of September, although again the suggestion here only seems based around the hypothetical that it would boost supplier outlook.
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“Slow sales”
Boy is that the biggest stretch of the term slow ever used.
so based on these reports the iphone se will be on infinite backorder since it shares so many of the same components. how can a phone what is selling so poorly be on 2-3 week shipping delays?
Just a report, nothing else. Easy to see why the stock market is no different than a slot machine.
Interest remark from someone who told me they were a share holder an hour ago? Share holder who thinks the stock marker is just a slot machine, okay then.
Unless you were getting ready to sell, then it’s nothing to really worry about. Or, if it’s below your ave share price, then this becomes a buying opportunity. To compare the stock market to a slot machine is probably based on ignorance of the differences between the two. If you invested your money in one slot machine, I believe they are programmed for you to lose, over the long term. Stocks aren’t programmed to lose for the long term, they are almost living and breathing because people are constantly buying and selling shares, which leads to a rise or drop in the share price, and you just have to figure out when to get in, and when to sell off.
Not a slot machine. It’s more like a card game with players who cheat.
I suspect, and others here have alluded to this, that this is just another scam to drive the stock price. Release a “rumour” just before the quarterly financial report. Drive the stock down and then when, as they often do, Apple exceeds expectations, reap in the profit.
Can these analysts really be this stupid? Isn’t this the exact same timeframe that orders slow down because GASP! a new model is coming?
I hate all things stock market related.
This quarter they always start cutting production to prepare for next model and reduce stock of current models.
Wasn’t this already priced into the stock? Also I thought some analysts were saying Apple was going to beat estimates this quarter, now they’ve changed their minds because of one rumor?
What do you mean by analysts beat estimates for this quarter? I think you mean the last quarter, ending March 31. The thing is, Apple hasn’t released last quarter’s numbers and I believe that’s what the Analysts were talking about, is whether or not Apple beat LAST quarter’s numbers. If they see a press release that may impact the numbers of the current quarter, then YES, analysts can change their estimates for the current quarter or the next quarter. An analyst changes their minds when they see good or bad news that relates the company in question. For Apple, over 60% of their sales are based on iPhone sales, so yeah, a drop in production means a potential drop in demand, which means less sales. Is it sometime to get worried about? Well, it depends on the person, short term investors might have more to worry about than a long term investor. So, if you are planning on pulling your money out, they this might give you reason to do so. Unfortunately there are a lot of day traders and short term investors, which lead to fluctuations of the stock more than the long term traders.
So should we now come to 9to5 for our financial advice? What were the reasons for the run up from $95 recently? I think you should not stoop to these type of stories. The stock market news always has to have a short one liner for any change, but stock change reasons are usually much more varied and complicated.
I don’t think it’s a coincidence that this “rumor” comes out right before earnings and after the stock has had a nice little run up.
This does not surprise me, the almost 2 year old Note 4, is still one of the world’s most flexible, useful and powerful phones, and £200 less than the latest competition. Pickup a Galaxy S7 Edge in black and it’s like something out of the future. Way more refined, sexy and tidy than the 6s with their awful antenna lines, no wireless charging or water resistance. Apple are I am sorry to say behind the curve, with the only saving grace the responsiveness of iOS in graphics intensive situations. Apple are no longer lead by someone who is a product guy, or a former engineer. And that Sir/Madam is the problem.
Lol….you are a Troll of samdung…
At least try not to be do obviouse.
I have nothing to do with Samsung. I have also owned two LG G3 phones, also very innovative and nice to use back in their day, and still today. Same with the HTC One M8, that is now £160 here yet fast, nice to use and lovely to look at. My next phone will be a Note 6, because I like stylus phones. If Apple improve iOS to be flexible and customizable as Android, and an iPhone with an Apple Pencil ready display, I’m back in.
The 2 year old Note 4 is a pile of shit. I know people that have one, and they can’t stand the thing. No, it’s not the world’s most powerful phone. The processor is a Snapdragon 805, hardly a power demon, it’s only 32 Bit. If you claim you are a “product” guy or a “former Engineer”, I can see why you are “former engineer”> You have a major problem thinking that the Snapdragon 805 processor is the most powerful processor.
1. You are alas incorrect. I know 6 or 7 people with the Note 4 (and more with the earlier models), and have never once heard anyone express dislike for it, myself included, who has owned each except the Note 3. The processor is good enough today to shoot 4K video, play games, display complex websites and more. 2. Nowhere in my comment do I refer to myself re Produce guy etc, I refer to Apple! 3. Nowhere do I refer to the phone’s processor, you do.
I stand my by comment.
Earnings report is on the horizon…so everyone with an agenda is out with their best rumors.
This happens in order form some Wall Street “expert” to make the news….this dooms day analysis has happened about four or more times this week. These are the same guys who said….No future for Apple…its a Windows World.!!!
The 6 series is just not an Apple worthy device. Sure there was pent up demand at first got a larger device, but it’s just a dumpy and ridiculously big for its footprint device.
Where is the elegance? Attention to detail? The slickness and morderness of a MacBook Air? It looks like a the type of device by a lazy company and not an agressive Apple.
The internals are great, just the external design does not match.It will be a mistake if the 7 keeps the same dimensions and mostly the same design. ceramic backs are not enough of a difference from he 6 design. I for one hate the curved glass edges, they make the phone feel like a wet bar of soap and make the screen much easier to break.
When WILL Apple stock hit 120 again…………….??? This 110 -112 is rather sad to watch every damn day/week. Maybe Apple needs to come out with a new iPhone every 18 months or so, rather than pushing out one every 9 months?? Maybe people are getting bored when a new iPhone is released with JUST minor upgrades? I say, do it every 18 months or so and make it great.
Apple hasn’t said anything only Nikkei. Don’t report Apple said if they have not. Apple would post this on there own. This is just a rumor monger that is trying to manipulate the stock to make a profit. Has nothing to do with Apple or production or sales for that matter.
I’ll believe it when I see it in the earnings report.