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AAPL Drops Following iPhone Cutback Speculation

by , 12:30 PM EDT, July 31st, 2007

Apple's stock began sliding down after analysts at Miller Tabak & Co. speculated that the company is drastically cutting back its iPhone production. The firm claimed that the iPhone maker is cutting back its output from 9 million units to 4.5 million, according to TheStreet.com.

Although Apple CFO Peter Oppenheimer stated that the company was pleased with opening weekend sales, the 270,000 figure reported fell below some analyst's expectations. In some cases, those estimates topped 500,000 units.

Apple's stock took a hit last week after AT&T announced that it had activated 146,000 iPhones in the first day and a half the combination iPod and smart phone was available since many investors saw that as a sign of slow initial sales. By the time Apple announced its third quarter earnings on Wednesday, however, the stock was rebounding, and at one point shot up near $150.

While the company does not offer information on how many units it plans to produce for any of its products, executives did state that sales are on track to hit the one million mark by the end of September.

Apple is currently trading at $136.77, down 4.66 (3.29%).


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

  

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Engine Joe Posts: 412 Joined: 29 Jun 2004
Subject:

Er... is it just me or is the concept of a 9 million unit order preposterous in the first place? Apple said it hoped to sell 10 million iPhones in the first 18 months. Why would they order 90% of those NOW?

This is FUD.

Close Name:Engine Joe Posts: 412 Joined: 29 Jun 2004
Subject:

A little digging reveals that while TheStreet.com may have reported it, the analyst who supposedly made the original statement is denying it.

From AI:
---
Apple shares slipped more than $5.00 or 3.5 percent in early morning trading on the Nasdaq stock market after TheStreet.com reported on a research note from Miller Tabak which allegedly asserted that Apple was reducing its production of iPhones from "9 million units to 4.5 million units.”

However, Miller Tabak analyst Peter Boockvar later told AppleInsider that his firm authored no such note on Apple. Instead, he said, gossip was passed along during a telephone conversation and was subsequently overblown.

"Disregard it. There's no note on Apple today," Boockvar said. "It's pure noise."

Close Name:Staggie Posts: 21 Joined: 06 May 2004
Subject: It's not the first weekend sales!

I'm disappointed that the MacObserver can't get this right.

Apple has not reported "first weekend sales" at all. The 270,000 number is the number of phones sold on Friday and Saturday only, not for the first weekend.

So comparing that number sold for Friday and Saturday to the 500,000 estimate for the first weekend is pretty misleading.

View Name:Guest
Subject: You should like this guy: But AAPL now!
Close Name:Terrin Posts: 350 Joined: 29 Jan 2006
Subject:

I agree that the Mac Observer should try to distinguish itself by being more then mediocre. So called analysts' predictions were based on the first weekend's sales. As it stands, these predictions were silly, considering Apple's guidance for the next year and a half is 10 million.

Close Name:remoran Posts: 4 Joined: 30 Apr 2005
Subject: iphone

iphone has to be open. I will never buy the device when it's tethered to AT&T, the worst of the telcos by far. If the iphone had been unlocked with 3G connects, Apple would have sold a ton. People want open access and wimax to the net. The 700 mhz auction is the most important news for the web because if RF spectrum remains open and wimax is as good as advertised, the need to go to the AT&Ts of the world becomes moot. Apple blew it on this because they have enough juice to do unlocked and let the telcos come to them, particularly if the device has wimax installed. Betting pool. iphone 2 will have this in spades along with connects to Skype. End game, they will sell a lot of phones including one for me.

View Name:Guest
Subject: apparently not
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