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Apple Slashes iPhone 5 Part Orders Due to Weak Demand

This rumor looks a lot like someone tried and failed in a market manipulation to drive the AAPL stock price below 500 to flush out a pile of stop loss orders, and thus potentially create a bigger buy opportunity for investors who would like to bet on the possibility of an nice upside swing.

They may try again tomorrow with a negative spin on facebooks announcements.

Apple's production has always been cyclic, and there are probably option investors making money by betting in either/both directions of these big price swings. Likely nothing unusual here.
 
Wow. 33 pages.

All you need to do is take a look at what's in people's hands. They wanted bigger screens and they got them for a lower price elsewhere.

No one cares about silly Maps, clouds, dents, lens flares and all that geeky stuff.
 
firewood said:
This rumor looks a lot like someone tried and failed in a market manipulation to drive the AAPL stock price below 500 to flush out a pile of stop loss orders, and thus potentially create a bigger buy opportunity for investors who would like to bet on the possibility of an nice upside swing.

They may try again tomorrow with a negative spin on facebooks announcements.

Apple's production has always been cyclic, and there are probably option investors making money by betting in either/both directions of these big price swings. Likely nothing unusual here.
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It went below $500 earlier in the morning.

As usual, like many of us knew..it was stock manipulation and no proof to the story...and was later debunked by many sites.

There needs to be some sort of requirement to list sources if you are involved in Wall Street.
 
jrswizzle said:
Maps has been beaten to death - many thousands of times. Like I said - works for me and I think 90% of the public.
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Apparently Maps didn't work for some WSJ Journlists and UBS Analysts. Probably they still have lingening bad taste when Apple Maps led them to middle of nowhere.
 
jrswizzle said:
Still find it interesting that Google adds all the functionality Apple wanted to add (now for free on the app store) after Apple dropped them.....those iOS users are worth some $$$ to them I'd imagine.
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Hardly amusing.

What Google wanted was a branded app and Latitude integration. Among other things I imagine. Apple didn't want to concede.

Please remember - Apple and Google had a contract and in that contract - it had criteria and/or technologies licensed. Just because Google had new features doesn't mean they should automatically give them to Apple.

Much like just because a new OS has new features doesn't mean older phones should get them. Isn't that an argument thrown around on here? Like Siri?

Point is - Google was willing to renegotiate. They had terms. Apple was willing to negotiate. They had terms. They both hit an impasse. So Apple did what they needed to do. And Google did what made sense for them.

Not sure why you find it "amusing" as if you believe Google was put in the worse position. I don't see tons of articles criticizing Google for what happened. And I'm pretty sure no one at Google got fired over it.
 
Dagless said:
That was innovative? Please look up Pocket PC. I had one in 2004, apps on my smartphone. Could even load them from any source. Wonderful times.
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Yes. Except that none of these abominations you call "apps" worked.
 
unobtainium said:
The whole concept of apps on your smartphone. It's easy to take for granted, I know.
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PalmPilots had this on mobile devices in 1996. IIRC, PilotGear/PalmGear was the biggest app store at the time. App business was big. Lots of cool apps. Psion and Newton predate that even. Handspring was making PalmOS smartphones circa 2002, years before the iPhone.
 
samcraig said:
Hardly amusing.

What Google wanted was a branded app and Latitude integration. Among other things I imagine. Apple didn't want to concede.

Please remember - Apple and Google had a contract and in that contract - it had criteria and/or technologies licensed. Just because Google had new features doesn't mean they should automatically give them to Apple.

Much like just because a new OS has new features doesn't mean older phones should get them. Isn't that an argument thrown around on here? Like Siri?

Point is - Google was willing to renegotiate. They had terms. Apple was willing to negotiate. They had terms. They both hit an impasse. So Apple did what they needed to do. And Google did what made sense for them.

Not sure why you find it "amusing" as if you believe Google was put in the worse position. I don't see tons of articles criticizing Google for what happened. And I'm pretty sure no one at Google got fired over it.
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No - not at all. I don't think Google was put in a worse situation. Just that the perception was Apple was simply trying to screw Google and that Google would undoubtedly be in the driver seat because of the Maps debacle.

The Google Maps iOS offering (given its features and seeming superiority over the Android version) proves Google wasn't as all powerful/in control of this situation as some thought.

But lets not start this now....lol
 
jrswizzle said:
I'd bet the US number is more like 95-98%.....

Those who have issues are always the loudest - and the media loves to blow things up. Not indicative of any one person's experience, just saying...
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Maps works great if you know the area well or do NOT need fluid transit directions. It just depends on what you need it for and where you are.
 
They are slashing it because they couldn't get onto world's biggest carrier which is in China. China was the biggest market, and they lost it to Nokia. This is primarily why they need to cut part orders.
 
Michael Scrip said:
Ok... back that date up to January 14, 2010 :D

My point was... there is always someone who is ready to buy a new phone any given day.

A person may only buy a new phone once every 2 or 3 years...

But people buy new phones every day.

The comment I was replying to said everyone who wants an iPhone already has one. But that's not always an accurate statement.

There is always someone who is ready to upgrade... or buy their first iPhone... or whatever. There are a few scenarios.

Do you think a day goes by when Apple sells ZERO iPhones across the globe? Maybe on holidays... but the online store is still open.
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Yep, I understand your point and completely agree with it.
 
SuperMatt said:
If anybody here really thinks iPhone sales will be 50% lower than expectations, you've got an insane blind faith in the Wall Street Journal. And if anybody wants to dump their shares of Apple, trading at 11 times earnings (back earnings) and with a market cap of less than 4x their cash pile, well, just give them to me and I'll rake in the cash gleefully.
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Let me explain:
Share price is a gamble about the future of a company. The iPhone is by far their biggest cashcow. If they sell a lot less than expected, say 20%, that means a lot less revenue and profit and there goes your '11 times earnings'. Also, in the eyes of the stock market, cash isn't worth very much when it's just sitting there at 1-2% interest.
 
firewood said:
PalmPilots had this on mobile devices in 1996. IIRC, PilotGear/PalmGear was the biggest app store at the time. App business was big. Lots of cool apps. Psion and Newton predate that even. Handspring was making PalmOS smartphones circa 2002, years before the iPhone.
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Fine. Then there hasn't been any innovation in cell phones since 2007 with the release of the original iPhone. My point still stands. Neither Apple nor their recent followers have innovated in the cellphone space in years. People need to stop throwing the word "innovative" around to describe small features or incremental improvements.
 
My bet is on this story being junk. It seems like a bunch of negative Apple stories lately based on little fact.

I'm guessing Wall Street wants Apple stock low right now and profits to be made like crazy in a few weeks when Q1 sales are released.

Guess we'll all see soon.
 
tdream said:
Please tell me what's innovative about the iPhone 3G, if anything that is the least innovative iPhone that Apple ever produced!!! The only difference between the original iPhone and iPhone 3G is ... wait for it.... 3G.... mind blown!!! If you think that's innovation you must happily spend hours playing with balls of wool.

The last true innovation from the iPhone line was the iPhone 4. Retina screen and new design. Siri is a hack and a taller screen doesn't cut it as industry leading.

Apple is in the profit taking phase. Relying on the old tried and tested platform of iOS. They are stuck in the same mould as microsoft. Super successfully with their original products but now are losing steam to other more flexible and multifaceted competition. Samsung can play with weird strange designs and lines of devices, same with Google and project Glass. Apple wants to keep their product line small and tight which is severely limiting that they can do to keep maintain their profit margin and innovate at the current pace.

You only have to look at the recent CES convention to see what real innovation is out there, 4K, wacom pen devices, optical cursor movement (as using your eyes), occulus rift (real virtual reality), body analysers (fitbit,nike,withings), mobile devices of all shapes and sizes. If Apple made something like the Lenovo Helix Apple fans would be off their rocker. i7 powered 1080p tablet 8GB RAM & 256gb SSD 11.6 IPS display with wacom pen input as well as 10 point multitouch. Hows that for innovation from boring old IBM.
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You made a lot of sense until that last paragraph. None of that nonsense at CES is innovation. 4K is a desperate attempt of a struggling industry to sell higher margin products again, pens will always be a tiny niche for designers, eyetracking is really old and doesn't work in real life situations, smart body analysers are old as well (remember that keynote, I think it was for the iPhone 3GS where they showed medical devices connected to an iPhone?), mobile devices were made extremely popular by whom again?, that Lenovo thing is not a product, it's a joke. Old-school Computers in tablet form have been tried for 10 years now and they don't work and don't sell.
 
To be expected...

With a rumor of a new iPhone coming soon, there shouldn't be a surprise that the demand for the current iPhone drops.

The instability of the Stock Market it's insane. So much insecurity and fear, just because of something the WSJ said. Is it true? Maybe, maybe not.

With the stock dropping below $500, this is a good opportunity to consider buying some Apple stock, as it may bounce back as the rumors for a new iPhone become more solid.

Short refresh cycles may hurt Apple. A yearly release may be better for Apple, and also provide the users with a better tested product, instead of a rushed-to-release product full of bugs.
 
Speedy2 said:
You made a lot of sense until that last paragraph. None of that nonsense at CES is innovation. 4K is a desperate attempt of a struggling industry to sell higher margin products again, pens will always be a tiny niche for designers, eyetracking is really old and doesn't work in real life situations, smart body analysers are old as well (remember that keynote, I think it was for the iPhone 3GS where they showed medical devices connected to an iPhone?), mobile devices were made extremely popular by whom again?, that Lenovo thing is not a product, it's a joke. Old-school Computers in tablet form have been tried for 10 years now and they don't work and don't sell.
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4K is a huge joke. Especially when considering the fact that the current video standard doesn't even have the bandwidth for 4K.
 
iOS6 compared to iOS5 is near impossible to see the difference. Apple maps :rolleyes: They need to hit a grand slam with iOS7, that's #1 most important right now. A larger screen would be nice, but that would be #2.

What if Samsung comes out with a killer design for the Galaxy S IV, super high quality build like the iPhone 5, using aluminum and polycarbonate, and have a 1080p Super AMOLED+ screen. That will be hard for to Apple to compete with only having the current iPhone 5.
 
Chalk this up to

1) Lack of features that make it better than those with 4 or 4s which run same ios6.

2) 16:9 screen, I love mine and feel cramped on older iphones but it's not the ideal 4 inch 3:2 screen that we all really wanted. Call it form factor but they got it wrong for sure.

3) Over estimating sales. I genuinely think apple thought they would sell more based on increasing market share but they are no longer offer anything unique to do that further.

4) Image. Apple is no longer the underdog that invented all the new tech and had it stolen. Apple hasn't really worked that hard in the past to portray itself this way it just was that way they got screwed left right and centre leading people to support apple as the good guys.

Now Apple are seen as a monster that squishes the very idea of another company competing with them. Their PR has been terrible and caused catastrophic damage to it's image.

It's sad to say but apple could do with some significant damage control and to fire some of their current employees that have been missing the mark with their public persona.

Early releases, cuts to make money, suing others etc has to stop. It's sad but i'm waiting for a nice drop in market value to invest if I can see a return to form.
 
kjs862 said:
Can thank a stale design and os for this.
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Or a highly competitive marketplace where the main players (like Samsung, HTC and Google) are keen to gain market.

It's not that the iPhone 5 was designed specifically poorly but there's so much choice for a quality smartphone and cheaper than the apple premium, it's part of the reason I upgraded my iPhone4 to a Nexus4 (price and google maps).

I also think people are overlooking the impact of Apple maps over the actual iOS and build quality, Apple took a serious hit for that snafu.
 
IMHO Apple is on the down turn... There stuff isn't the same, I remember my first iMac G4 the thing was a tank and I used it right till 2009 when it got too outdated, I bought another Mac cause how reliable that iMac was but seems like their reliability have taken a hit. OS is outdated the iPhone 5 look has been around for awhile now and Apple prices are just getting stupid now. I looked at a MacBook Air and its nearly $2000 for 500gb hard drive! Kinda way over priced.

I like apple and it'll be sad to see them go on the down turn but Apple is playing it safe and their competitors are catching up and will start to make ground on them. Apple just doesn't feel the same as the bug free stuff it used to be, even my iPad 3 is bugging out since the os6 update safari crashes and freezes, these were things Mac OS in the past never had issues with. For the first time I'm considering making the switch back to windows, apple is over pricing their products and they don't offer the same reliability they use to offer, if I have to replace my computer every few years then I'm not spending $2000 or spending $1500 and only have 256gb hard drive, too many hoops customers have to jump through like with the air you cant upgrade ram or hard drive after you buy it, in the past I was annoyed but ok with it cause of the reliability but it doesn't seem to be there anymore.
 
I didn't upgrade because I want:

* larger screen

* jailbreak (for SBSettings, which the iPhone ought to have come with out of the box, bash and full BSD userland, mobileterminal, g++ and ssh so I can build software to remotely monitor and service my servers, plus activator and remove background.)
 
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