Apple Sinks on iPhone Cutback Talk
http://www.thestreet.com/_yahoo/newsanalysis/techtel ... »
The shine is quickly coming off Apple's (AAPL - Cramer's Take - Stockpickr - Rating) iPhone.
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Apple shares took a 3% dip Tuesday amid speculation about a cut in production of the trendy iPod-inspired phone. The chatter that sent the stock down was that Apple was reducing its production of iPhones from "9 million units to 4.5 million units," according to a note from Miller Tabak & Co.
The note cites talk among traders at Goldman Sachs and also includes speculation that the cuts may be coming in iP...
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The shine is quickly coming off Apple's (AAPL - Cramer's Take - Stockpickr - Rating) iPhone.
TD AMERITRADE
Fidelity Investments
Zecco.com
E*TRADE FINANCIAL
Fisher Investments
Charles Schwab
Apple shares took a 3% dip Tuesday amid speculation about a cut in production of the trendy iPod-inspired phone. The chatter that sent the stock down was that Apple was reducing its production of iPhones from "9 million units to 4.5 million units," according to a note from Miller Tabak & Co.
The note cites talk among traders at Goldman Sachs and also includes speculation that the cuts may be coming in iP...
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wfine81 said:
Looks like VZW sure knew what they were doing when they passed on it.
Looks like you are trying to find any article in the world -or in the internet- to convince yourself of just that... đ
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Oh yes, I spent all day looking for an article just to convince myself, thank you so much for pointing that out. I dont know what we would do without your intelect, thank you!
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its a good article...the iphone has a lot of kinks to work out and so does the ATT network. Thats big news if they essentially cut production by 50%.
The iphone is a huge advancement in cell phones, but it has its flaws to man
The iphone is a huge advancement in cell phones, but it has its flaws to man
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cwcanty said:
Thats big news if they essentially cut production by 50%.
The iphone is a huge advancement in cell phones, but it has its flaws to man
And probably that is what this is all about. Probably they have the next generation iPhone so they find senseless to keep production at the pace it was... I guess only time will tell...
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I really don't think the cut is due to a new iphone...why would they have ordered or predicted 9 Million in the first place then? Its due to demand in my opinion....but you're right, only time will tell...
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The 9 million figure was far from set in stone. It's not like even a small fraction of these were already in the production pipe. Like a lot of companies, Apple tends to maintain as close to zero inventory of parts and product as possible. Parts in, product out. This keeps them from being caught with a glut of unsold product and unused parts (though it makes them vulnerable to supply line disruptions). So, they did have the flexibity to tentatively plan for an optimistic run, but to scale down to more conservative figures later on.
I'm with you, though, that this probably isn't due to a Mk II iPhone. This is due to the iPhone not hitting its maximum projected sales.
Can't really interpret this as tanking, though. The device is popular....
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I'm with you, though, that this probably isn't due to a Mk II iPhone. This is due to the iPhone not hitting its maximum projected sales.
Can't really interpret this as tanking, though. The device is popular....
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Its pretty simple... Apple needs an 'iPhone 2' with 3G, and $100-200 cheaper. Then they'll blow out the door. đŗ
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If they "only" sell 4.5 million of them, they aren't exactly hurting. As is, Apple's most recent quarterly report said they'd moved 240,000 units, which is respectable (given that this quarter only included the device's first few days of sale), and they expect to have moved a million units after the first full quarter of sales. If they do that, they're doing alright (though still below certain initial projections.
It's just that the initial plans were wildly optimistic. They can move half, or possibly even a quarter of what they expected, and still make money on the whole thing... presuming they don't overproduce the inventory first.
It won't be good for the stock price, but then the stock was overvalued anyways. Better to let it dip n...
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It's just that the initial plans were wildly optimistic. They can move half, or possibly even a quarter of what they expected, and still make money on the whole thing... presuming they don't overproduce the inventory first.
It won't be good for the stock price, but then the stock was overvalued anyways. Better to let it dip n...
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Anxiovert said:wfine81 said:
Looks like VZW sure knew what they were doing when they passed on it.
Looks like you are trying to find any article in the world -or in the internet- to convince yourself of just that... đ
Or maybe the iPhone, good as it is in some ways (UI, web browsing), has flaws. âšī¸
No 3G, expensive, no voice-calling, no MMS, and bluetooth that's even more crippled than some VZW phones. đ˛
I think Apple will eventually get it together and make a really good 'iPhone 2', but c'mon... to expect a newcomer cellphone maker* to just stroll on in and get everything right the first time is a bit much to expect.
*(oh, and the ROKR doesn't count...
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And it's not like Apple is going broke... considering they just set a new profit and revenue record (best June quarter ever). Or that there's any indication that the iPhone has been a money-loser.
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They probably released it with less features purposely. Otherwise there wouldn't be any incentive to upgrade and make Apple more profits.
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Absense of MMS had to be deliberate. They probably figured something to the effect of, "Okay. Why wouldn't users just send it over email? Particularly seeing as all of the plans for this thing are going to have unlimited data."
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Yeah, but not everyone knows everyone else's email address. They DO know their phone #, if they're talkin' to them, which is all you need to send a pic via MMS.
Leaving out MMS doesn't really make any sense. Most phones nowaday have it, even many low-end ones do. đ˛
Leaving out MMS doesn't really make any sense. Most phones nowaday have it, even many low-end ones do. đ˛
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