1. A closer look at those iPhone supply chain cuts
FORTUNE -- At least five top Apple (AAPL)
analysts lowered their price targets last weekend
based on reports that the company had reduced
some parts orders for the iPhone 5 in its Asian
supply chain.
In a note to clients issued early Tuesday,
Topeka's Brian White took a closer look at those
order changes. His conclusion: "we believe the
doomsday scenarios painted over the past week
are inaccurate."
"Our checks," he writes, "indicate that cuts have
occurred in the iPhone 5 supply chain at certain
suppliers beginning a couple of weeks ago for the
month of December; however, no cuts occurred
during the months of October or November. Additionally, we did not find changes for the March
quarter. As such, we remain comfortable with our iPhone 5 and iPhone 4S forecasts for the
December and March quarters, which appear to be conservative. Also, given our research in recent
weeks, it is tough for us to ignore the resiliency of iPhone 4S demand as consumers flock to these
discounts. During our October trip to Asia, we indicated that yield issues for certain components
used in the iPhone 5 would result in supply constraints, which we believe is now driving Apple to cut
orders at certain supply chain vendors for the first time in the December quarter. Actually, we are a
bit surprised that these cuts didn't occur sooner."
http://dictionary.reference.com/browse/BUSINESS
White is sticking with his Street-high $1,100 price target, more than double Monday's closing price
of $518.83.
Meanwhile, kudos to Wells Fargo's Maynard Um for the headline in his post-supply-chain-panic note:
AAPL: The Mayan Apocalypse Is Not Upon Us.
http://tech.fortune.cnn.com/2012/12/18/apple-iphone-5-supply-chain-cuts/
