Tim Cook Warns Against Trying to Interpret Supply Chain Order Rumors

[MacRumors]

Tim Cook broadly addressed recent rumors that Apple may have cut iPhone 5 orders on weak demand. That particular rumor gained significant attention, resulting in a notable dip in Apple's stock price.

Cook was careful not to address any particular rumor, but warned against trying to interpret single data points, even if they happened to be accurate:

Months of rumors about order cuts and so forth, so let me take a moment to comment on these. No comment on any particular rumor.

I suggest its good to question the accuracy of any kind of rumor about build plans. Even if a particular data point were factual, it would be impossible to interpret that data point as to what it meant to our business. The supply chain is very complex and we have multiple sources for things. Yields can vary, supplier performance can vary. There is an inordinate long list of things that can make any single data point not a great proxy for what is going on.

Cook made the comments during today's Q1 Results conference call.

Article Link: Tim Cook Warns Against Trying to Interpret Supply Chain Order Rumors

[LostSoul80]

Not easy to cover massive orders. Just saying

[Dwalls90]

*cough* wall street journal *cough*

[applesith]

Analysts buy on rumors of unreal expectations.

WSJ picks up article by analysts with misinformation. Stock drops.

There is no accountability in the media anymore. It's a sham. The media chooses who they want to win regardless of the facts and what is actually happening.

[MacRumorUser]

So Tim is doubling down on security on this one!

[AaronEdwards]

Tim Cook broadly addressed recent rumors that Apple may have cut iPhone 5 orders on weak demand. That particular rumor gained significant attention, resulting in a notable dip in Apple's stock price.

Not easy to cover massive orders. Just saying

While I have seen reports on the total number of iPhones sold last quarter, I have yet to see a report of how many were sold of the different iPhones models. If they really want to make that rumor go away, releasing those numbers is all that's needed.

There is, after all, quite a difference between selling an iPhone 4 and selling an iPhone 5 when it comes to profit.

Edit: There were lots of reports in September about how many iPhone 5 were sold. None now.

[1Alec1]

Couldn't they get a better picture of the guy? He looks drunk.

[neiltc13]

So basically he is asking the shareholders to maintain blind faith in the face of disappointing results.

There's no smoke without fire.

[Bubba Satori]

Damage control isn't nearly as cool as insanely great.

Tim needs to get back to his old job interfacing with the UPS logisitics guy
and Apple needs to find somebody with some vision and passion.

Just sayin'.

[cxny]

investors ain't buying it, APPL is down 10% in after hours trading. it's going to be ugly tomorrow.

[TallGuy1970]

In other words... "Analysts are simply out to make a buck and just don't understand or care about understanding real business!!!!!"

[1Alec1]

Originally Posted by cxny

investors ain't buying it, APPL is down 10% in after hours trading. it's going to be ugly tomorrow.

What does APPL have to do with this?

[LagunaSol]

Months of rumors about order cuts and so forth, so let me take a moment to comment on these. No comment on any particular rumor.

Uh oh, Tim said "order cuts." They must be cutting orders again!!! Apple is doooomed!!!!!

[KylePowers]

Nice try CEO!

[DesertEagle]

Even the more reason to speculate now. Talk about fueling the fire.

[TallGuy1970]

Originally Posted by neiltc13

So basically he is asking the shareholders to maintain blind faith in the face of disappointing results.

There's no smoke without fire.

Disappointing results? Did you actually see the numbers or are you simply basing this statement off of some stock analyst's prediction?

[1Alec1]

AAPL is down in after-hours trading due to "disappointing" earnings data. But it was higher than expected, as I've read... ???

[Sedrick]

He's got a (data) point there.

[Michael Scrip]

Originally Posted by AaronEdwards

While I have seen reports on the total number of iPhones sold last quarter, I have yet to see a report of how many were sold of the different iPhones models. If they really want to make that rumor go away, releasing those numbers is all that's needed.

There is, after all, quite a difference between selling an iPhone 4 and selling an iPhone 5 when it comes to profit.

Edit: There were lots of reports in September about how many iPhone 5 were sold. None now.

The last number I saw estimated that the iPhone 5 is 68% of iPhone sales... with the iPhone 4S and 4 at 32%

That's a huge drop in the percentage from a year ago... where the then-current iPhone 4S was 90% of sales... with the iPhone 4 and 3GS at 10%

Yeah... they generate less profit selling an iPhone 4. But thinking about it optimistically.... a sale is a sale. It's better than some other company getting that sale.

Apple's phones start at $450... which is a relatively high price across the globe. It's actually pretty remarkable that they sell so many phones despite that high starting price.

[techwhiz]

Originally Posted by 1Alec1

AAPL is down in after-hours trading due to "disappointing" earnings data. But it was higher than expected, as I've read... ???

It wasn't a "bad" quarter.
They had record revenue and profit.
It didn't meet the "whisper number". That number is an analyst guess and wish and you get penalized for knowing your own business and accurately indicating what you will do.

Analyst suck.

[MrDc2]

[macs4nw]

Originally Posted by Bubba Satori

Damage control isn't nearly as cool as insanely great.

Tim needs to get back to his old job interfacing with the UPS logisitics guy
and Apple needs to find somebody with some vision and passion.

Just sayin'.

Image

Pure nostalgia. As likable as Woz is, and as much as he enabled Steve to do all these great things in the early years, and as much passion as he may have, Woz wasn't the visionary part of the equation.

[olowott]

AAPL and Apple are two separate companies

i'll say it again.

[1Alec1]

Originally Posted by techwhiz

It wasn't a "bad" quarter.
They had record revenue and profit.
It didn't meet the "whisper number". That number is an analyst guess and wish and you get penalized for knowing your own business and accurately indicating what you will do.

Analyst suck.

Actually, the revenues were below expectations and the profits above. Who cares about revenue if you're making profit?

[Bubba Satori]

Originally Posted by 1Alec1

Actually, the revenues were below expectations and the profits above. Who cares about revenue if you're making profit?

People looking for guidance as to what profits might be in the future, not today's profits.
If revenues and margins are not accelerating, are static or are going down,
chances are pretty good that future profits might do like wise.