iPhones not selling like they used to?


Sanford C. Bernstein analyst Toni Sacconaghi looked at Apple Inc.'s (NASDAQ: AAPL) latest sales numbers and thinks that the company may have an iPhone inventory problem:

We believe the data points to a significant amount of iPhone channel inventory ... This is negative in two ways: (1) it indicates end-user demand for iPhone is lower than many investors may think based on Apple's sales figure; and (2) it points to slower iPhone sales in the current quarter, since much of this inventory is likely to be drawn down.

Check out News.com's coverage of the report for more details and insight.

Apple's stock has been hit hard of late, and this latest inventory report underscores one of the reasons I wouldn't buy Apple stock (I wouldn't short it either): The company is 100% dependent on its continued ability to innovate and stay ahead of the competition with each new product introduction. Even a blockbuster hit can only carry the company for so long.

Any investment in Apple is essentially a bet on the company's ability to continue being an innovator. Call me crazy but if I'm going to pay 6+ times book and 25 times earnings, I'd prefer a strong moat that doesn't require continued brilliance.

Reader Comments (Page 1 of 2)

Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 12, 2012: 10:03 PM

Hot Stocks

General Electric

18.875-0.255(-1.33)

Alcoa

10.29-0.35(-3.29)

Apple Inc

493.42+0.25(+0.05)

Google Inc 'A'

605.91-5.55(-0.91)

Bank of America

8.07-0.11(-1.34)

Wal-Mart Stores

61.90-0.06(-0.10)

Exxon Mobil Corp

83.80-1.08(-1.27)

Ford

12.44-0.25(-1.97)

Citigroup

32.925-0.735(-2.18)

IBM

192.42-0.71(-0.37)

Yahoo

16.14+0.14(+0.88)

Starbucks

48.82-0.38(-0.77)

Microsoft

30.495-0.275(-0.89)

Home Depot

45.33+0.06(+0.13)

DailyFinance Headlines

Benzinga Headlines

TheFlyOnTheWall.com Headlines

BioHealth Investor Headlines

WalletPop Headlines

DailyFinance BlackBerry App

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance

BioHealth Investor Headlines

Page Loaded in 1329102203899 ms.