Analyst: Apple Cuts Parts Orders, Demand Waning?

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Apple has cut its parts orders, according to one analyst. Typically, such a move would denote a decrease in expected demand for a product over a certain timeframe, and that could possibly be true: whether they are true or not, there are rumors swirling around that Apple is moving to a six-month update cycle, as opposed to the yearly cycle that has been used for roughly a decade.

Rumors of an impending update have historically hurt Apple’s bottom line, as anticipation for a new device cuts down on demand for the generation currently selling. There have been rumors that Apple will be unveiling new devices in the spring of 2013, though such rumors have so far only come from incredibly sketchy and unreliable sources. They do, for better or worse, have an impact on the market.

It should be stressed that this analyst doesn’t know that Apple has cut its parts order is a fact. There are various potential explanations: Apple could cut a parts order from one specific supplier in order to get the part from another supplier who is offering either a superior deal, or superior quality.

In other financial news, Apple’s stock has continued to fall. Again, largely due to the word of analysts who are often completely incorrect, Apple’s stock is at a ten-month low. While that sounds bad, Apple is still up year-over-year and continues to be the largest corporation on earth. It’s unclear when the slide will stop, but it seems as if Apple’s latest hardware releases weren’t enough to please the fat cats on Wall Street.

Perhaps some nice, amazing software will please them.

[Forbes]

Post a response / What do you think?
3 responses to Analyst: Apple Cuts Parts Orders, Demand Waning? and 11 more on the forums.
  1. what do I think? I think you are either smart and shorting, and/ or sort and going long.

    Either way, you are too smart to be writing such an idiotic blog.

  2. It’s the middle December, of course the 1st quarter of 2013 is going to be slower than the Holiday season of like a 1/3 of the world. It would only make sense to scale back orders @ this point. No wonder the economy is in such a sad state, we have supposedly smart people that can’t see beyond their noses.

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