iEntry 10th Anniversary
Rumors
News
iPhone production slashed in half
UPDATE: Sorry, kids, looks like TheStreet was indulging in some wishful thinking. Everyone’s denying the iPhone production cuts now.
Apple might be hard pressed to put 10 million iPhones in people’s hands by 2008 as the company cut iPhone output by 50 percent.
iPod production could follow suit, if rumors on TheStreet.com prove correct. Wall Street pushed shares of AAPL down, though they had recovered slightly in after-hours trading:
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 the stock trading desk at Miller Tabak & Co.
The trading note, issued in an attempt to explain why Apple shares were down in heavy volume despite a lack of apparent news, cites talk on Wall Street and also points to speculation that the cuts may be coming in iPod production.
Apple’s fat profit margins come from their hardware. If they are making cuts in response to a perception of slowing demand, this could be a little snowball at the top of a big hill getting ready to roll.
Via TheStreet
July 31st, 2007 at 4:17 pm
This was actually just a rumor that got blow out of proportion.
From AppleInsider:
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 conversation and was subsequently overblown.
“Disregard it. There’s no note on Apple today,” Boockvar said. “It’s pure noise.”
Apple slips on overblown iPhone remark; iPod ramp in September?
http://www.appleinsider.com/articles/07/07/31/apple_slips_on_overblown_iphone_remark_ipod_ramp_in_september.html
July 31st, 2007 at 9:37 pm
Man, where does one go to find news not based on complete speculation, guessing and innuendo?
This couldn’t possibly be a whispering campaign designed to manipulate Apple’s stock price?
August 1st, 2007 at 7:04 am
Hehehe. Good question. about where to go. The pros don’t call it speculation, they refer to it as ‘Mosaic theory’. Here’s an example:
http://www.webpronews.com/topnews/2006/01/27/bear-stearns-tapping-blogs-for-stock-analysis