Apple’s Stock Pressured by iPhone Concerns

| Apple Stock Watch

Concerns about soft demand for iPhone has reared its perennial head, and Apple's stock has taken a beating as a consequence. Shares in $AAPL ended Tuesday at US$110.49 per share, down $1.99 (-1.77 percent), on heavy volume of 53 million shares trading hands.

$AAPL 5 day chart ending 12/15/2015

AAPL Five Day Chart Ending 12/15/2015
Source: E*Trade

Several Wall Street firms have cut iPhone estimates this week, including Morgan Stanley (analyst Katy Huberty), JP Morgan (analyst Narci Chang), Barclays (analyst Mark Moskowitz), and Susquehanna (Chris Caso). Driving those cuts were concerns from some of Apple's key component suppliers.

Apple has not commented on the analyst reports, but in the past CEO Tim Cook has said Apple's supply chain was too complex to draw conclusions from isolated information from suppliers. The company has also been hit with frequent concerns about iPhone sales, though those concerns have never borne out.

Analysts and investors get spooked by any hint of an iPhone slowdown because the device is responsible for almost two thirds of Apple's revenue. The question, of course, is whether this time the concerns are finally justified, or if $AAPL's decline represents a buying opportunity.

The stock is down some 17.8 percent from its high of $134.54 per share set on April 24th, 2015, a significant correction that is far below the market's broader performance.

*In the interest of full disclosure, the author holds a tiny, almost insignificant share in AAPL stock that was not an influence in the creation of this article.

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Lee Dronick

  The question, of course, is whether this time the concerns are finally justified, or if $AAPL’s decline represents a buying opportunity.

I would go with the later. Anyalists and “investor’s” panic when a Slushy machine in a QuickiMart breaks,down.


I wonder, and this is just speculation on my part, if tax strategy might be a factor. If at the end of the year (only a couple of weeks away), Apple stock has dropped,  would that benefit those with large holdings of Apple stock? Could we be seeing an attempt to drive the stock down by those with large portfolios, knowing that it will recover by the middle of January?

Lee Dronick

, knowing that it will recover by the middle of January?

At the quarterly report Apple will say that they had the best Christmas shopping season on record.


At $110, APPL is NOT a buying opportunity. 10 bucks either way is nothing for APPL. The bigger question is - is the Shine Off of the iPhone now that the world is saturated with great used iPhones and Samsung Galaxies?
Apple has proven it can’t think outside the iOS sandbox - look at the Watch failure (or is it a success that dragged APPL down?), the iTunes debacle, the huge iPad nobody asked for - and that is the real problem - no imagination. But, with lower class stores like Target and RadioShack selling Apple stuff the holiday should be okay. Accessories alone will make APPL more money than a lot of companies this season.


I’d agree $110 is not a buying opportunity. But then I don’t play the market so for me it’t never a buying opportunity.
I wouldn’t say the shine is off the iPhone in particular. All manufacturers are dealing with the issue if solid used phones on the market. Smart phones are mature enough that the drive to update is much less. It’s like cars. People used to have to replace them every year, now if we don’t get ten something is wrong. I have a 5C and see no reason to replace it for the foreseeable future. Barring some radical new technology or an unfortunate encounter with an icy sidewalk.
iWatch failure? All the analysts seem to suggest that the Apple Watch has sold in the billions of dollars. Not bad for an accessory. Not bad for a failure.
I’ll grant you iTunes on the Mac is a mess. The package is bloatware that is in dire need of being broken into several smaller parts, much like they’ve already done on iOS.
Target and Radio Shack? So, somehow selling stuff in more outlets is a bad thing? I’m not really sure where you’re going with this.


Target and RS have been there all along, why does Apple add them now? It SEEMS like they are going “downstream” to find more customers for the iPhone in the face of flagging sales.  The Watch failed because it is not “buzzed” about in social and Apple refuses to release sales figures for some reason all pointing to failure albeit with millions sold; it probably is a loss leader as it didn’t affect APPL, or if it is embedded in APPL’s price then it masks declining iPhone sales. Either way, more was expected. APPL should have a nice Christmas what with the discounts offered all over the place.


Target has been selling Apple products for several years, they’re not a new addition for this holiday season.
I don’t think you can say any product is a success or a failure until you see year over year data. This is a new product that’s only been on the market for about eight months.  I fully expected it to crash and burn, but so far I’ve been very surprised by the “buzz” and what I’m seeing for reported sales. None of it means anything until we see some hard numbers. None of it really means anything until they get beyond the 1.0 first try models. I didn’t get an iPhone until the 5C.

Paul Goodwin

The Wall Streeters get rich by driving known performing stocks down and buying it. At the next Apple quarterly earnings the investing world will again be shocked that Apple beats it’s guidelines, and will beat these speculations of a few so-called expert analysts. The target stock price is still far above where the stock is now. The Wall St slicksters know this. And they also know that there are millions of scared stock owners that will sell when enough fear is present. Just buy it at $110. Five years ago it was under $50. Five years from now it’ll be over $200. The 5-6% reduction in parts orders from Apple’s Suppliers means nothing, just like Tim Cook said. Companies manage supply chain flow constantly, and reduce inventory at years’ end for tax purposes.

Oh. And CB:
The shine isn’t off anything. Apple’s customers aren’t typically used phone buyers. And where’s the evidence that the Apple Watch is a failure outside of Apple brasher comments? It’s leading a developing market. Target isn’t a down market store. And where’s any substantiated evidence of flagging sales? And the iPad Pro you claim nobody asked for is predicted to sell 2.5 million in it’s first quarter even during a supply constraints period. Again, you’re talking out of your lower rear orifice.


AAPL at $110 IS a buying opportunity. When AAPL hits $130 in 2016, you are approaching 20% returns, not to mention the dividends and future growth potential. I suspect we will hear how Apple has bought even more stock back during these lows, which will help up the value as well.

As for the iPhone, Apple’s 3D Touch and performance boosts keeps people buying the latest and greatest, Apple Watch is doing just fine, the larger iPad Pro will sell well in markets that need the larger screen real estate, and, well, CB just keeps TRYING to turn positives into negatives, as trolls often do. There is no way to reason with him, as he will twist everything into a negative due to a Bosco-type hatred of the ‘new’ Apple. I do still believe he is Bosco in disguise, but a ‘lower class store’ version of him. At least Bosco brought some intelligence and reasoning into his arguments.

Proof on Apple’s innovation regarding 3D Touch? Samdung is copying them once again, just like they did (or do) with iPhone designs, iPad designs, many iOS icons, Apple Retail Store design, box design, Mac Mini design, Macbook design, smart covers, microphone app design, camera connection kit design, iPad software keyboard layout, iPhone charger design, Apple TV ads, dock connector cable design, etc.

Paul Goodwin

RonMacGuy: ” I do still believe he is Bosco in disguise, but a ‘lower class store’ version of him.”  HAHAHAHAHAHAHAHA


How could I have missed CB’s comment about the iPad Pro?
Yes, this is EXACTLY the iPad I have been wanting since I got my iPad Air. More space and power. Split screen. In a couple of years when my existing iPad Air is past its prime this is the one I’ll be getting. By then it may be powerful enough to replace my Mac.



Thank you. Thank you. Taking a bow.


When swimming in a septic tank, it is easy to miss something in a sea of complete and utter $hit!!



If you are interested in a well written article on what is going on with these laughable prognosticators here is a link:

Of course this will have little impact on our residents naysayer.

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