Slash LaneShares of Apple Inc. slumped further south on Wednesday amid a weakening macroeconomic outlook and reports of additional production cuts affecting not only the company's handhelds, but also its red-hot notebook business.
"For both iPods and iPhones, we believe Apple was previously targeting a roughly 50 percent quarter-over-quarter decline for first quarter units, whereas, we now think the firm is targeting a 60 percent quarter-over-quarter unit decline for first quarter units," he wrote.
According to Berger, the iPod Touch has seen the largest cuts when compared to his checks last month, suggesting demand for higher cost players has fallen off from the company's prior expectations.
"With Broadcom selling the touchscreen controller into the iPhones and iPod touches, and with Marvell selling WiFi chips into the iPhone, both of these chip firms should see slight negative revenue impacts in their March quarter, though we believe the magnitude of this bad news is relatively small," he explained.
With respect to Apple's computer business, the FBR analyst said his checks indicate the company has cut its first quarter MacBook build forecast by about 50 percent compared to the prior quarter, down from 35 percent upon his last check.
Meanwhile, iMacs appear to be bucking the trend, he said, with orders for the desktop systems expected to increases 35 percent sequentially compared to previous checks, which suggested demand for the all-in-one systems would remain relatively flat.
It should be noted that Apple on Tuesday introduced new versions of both the iPod touch and the iPhone, offering double the storage of the previous high-end models for a $100 premium. It's unclear whether any said production cutbacks may have been a precursor to these new models. Similarly, it's unclear whether reductions in MacBook build orders will be offset by demand for company's new MacBook Air.
Nevertheless, shares of the electronics maker closed down $7.36 or 5.69 percent to $122.00 on the Nasdaq stock market.
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Malcolm Owen
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Shares of Apple Inc. slumped further south on Wednesday amid a weakening macroeconomic outlook and reports of additional production cuts affecting not only the company's handhelds, but also its red-hot notebook business.
Craig Berger, an analyst with FBR Research, told clients in a research note this week that the Cupertino-based company has reduced orders for its handheld devices for the second time in as many months, likely reflecting less-than-expected sell-through in the fourth quarter of 2007, or thus far in the first quarter of 2008.
"For both iPods and iPhones, we believe Apple was previously targeting a roughly 50 percent quarter-over-quarter decline for first quarter units, whereas, we now think the firm is targeting a 60 percent quarter-over-quarter unit decline for first quarter units," he wrote.
According to Berger, the iPod Touch has seen the largest cuts when compared to his checks last month, suggesting demand for higher cost players has fallen off from the company's prior expectations.
"With Broadcom selling the touchscreen controller into the iPhones and iPod touches, and with Marvell selling WiFi chips into the iPhone, both of these chip firms should see slight negative revenue impacts in their March quarter, though we believe the magnitude of this bad news is relatively small," he explained.
With respect to Apple's computer business, the FBR analyst said his checks indicate the company has cut its first quarter MacBook build forecast by about 50 percent compared to the prior quarter, down from 35 percent upon his last check.
Meanwhile, iMacs appear to be bucking the trend, he said, with orders for the desktop systems expected to increases 35 percent sequentially compared to previous checks, which suggested demand for the all-in-one systems would remain relatively flat.
It should be noted that Apple on Tuesday introduced new versions of both the iPod touch and the iPhone, offering double the storage of the previous high-end models for a $100 premium. It's unclear whether any said production cutbacks may have been a precursor to these new models. Similarly, it's unclear whether reductions in MacBook build orders will be offset by demand for company's new MacBook Air.
Nevertheless, shares of the electronics maker closed down $7.36 or 5.69 percent to $122.00 on the Nasdaq stock market.
[ View this article at AppleInsider.com ]
nonesense... id on't believe these reports... where are they coming from?
Well the most obvious thing about this "opinion" is that the first quarter ended Dec 31, 2007 and Apple reported results on Jan 22, 2008. So clearly whatever Apple is doing has nothing to do with the already-over first quarter.
Second, these analysts are retards. Apple buys parts from a number of suppliers. Just because they cut order for one doesnt mean they will produce less iPods or iPhones. It could mean they are getting the parts elsewhere for less money or splitting the demand to ensure competition among suppliers. It could also mean that Apple is replacing that product with something new that uses different parts. I am sure the company that used to make iPod click wheels is not selling as many click wheels because Apple is switching to touch screens. This doesnt mean that buying less click wheels = less iPod sales.
This is just another unsubstantiated opinion based on rumors and speculation that does not cite any reliable sources and is contrary to Apple's own guidance just like the stupid rumor about 1.4 million iPhones that Apple was hiding on a shelf somewhere.
Again- why weren't the existing 8 and 16GB iTouch models reduced? The prices of those flash hard drives should be lower than 6 months ago! This quarter- who will buy them when you know by 3 months they will be slashed by $100? Their priceing is seriously going wacko lately.
For bringing us both 1984 and 1929!!
Recession is just a euphemism for what our chump-in-charge has got us hurtling toward: a Depression!
Between the runaway spending on our permanent war and the irresponsible borrowing our government is indulging in and the sub-prime lending schemes created by Bush's cronies (and, of course, winked at by the "regulators" who are paid to sleep at the switch), it was only a matter of time before it all came crashing down.
Hopefully, President Cheney and his lapdog, Bush, will go when there time comes (January 20, 2009; 12 noon) and not declare martial law as they nuke Iran.
I predict hard times for a while, but if we can survive, America can come out better than ever.
I can't wait to see how the Limbaughs, Hannitys, Savages, Coulters and the rest of those scumbags handle an Obama Presidency with a Hillary Clinton Cheney-esque Vice Presidency. He'll run the nice government and she'll quietly run the shadow government that sticks it to the Enemies of the State! MWAHAHAHAHAHA!
It should be noted that Apple on Tuesday introduced new versions of both the iPod touch and the iPhone, offering double the storage of the previous high-end models for a $100 premium. It's unclear whether any said production cutbacks may have been a precursor to these new models. Similarly, it's unclear whether reductions in MacBook build orders will be offset by demand for company's new MacBook Air.
This is the most sensible part of the article. Of course one would expect them to
decrease orders on some things as they introduce hot new products.
I don't think this is bad news at all. Just normal business practices.
(Lovin' my new MBA, by the way!)