Friedman Billings Ramsey analyst Craig Berger also covers Broadcom (NASDAQ: BRCM), Marvell Technology (NASDAQ: MRVL) and the likes -- companies that supply Apple with iPhone components. He regularly checks into Apple's supply chain and he consequently now thinks production of the 3G iPhone could fall by as much as 40% in the calendar fourth quarter sequentially. Last time he ran his checks, he suggested a 10% drop. The analyst further said that this is an indication on how the global slowdown is affecting even high-end consumers.
This comes not long after Apple has reported financial results, boasting a 26% rise in quarterly profit thanks to growth in iPhone sales -- Apple sold 6.89 million iPhones during the quarter, outpacing Research in Motion (NASDAQ: RIMM) and capturing 2.3% of the phone market. Apple also said iPhone builds remained healthy.
Still, there is no denying Apple is not immune to macroeconomic conditions. If the analyst is right, it looks like the slowdown has finally touched the tech darling and is going to hurt demand for its products evern more going further. While another analyst suggested the production "cut may not be as bad as it sounds if Apple had already ramped up delivery of the iPhone to countries outside the United States," it certainly doesn't paint a pretty picture either.
Investors have not reacted much to the news today as Apple shares closed down 0.59% at $106.96, but perhaps the 46% punishment year-to-date has been enough so far.
This comes not long after Apple has reported financial results, boasting a 26% rise in quarterly profit thanks to growth in iPhone sales -- Apple sold 6.89 million iPhones during the quarter, outpacing Research in Motion (NASDAQ: RIMM) and capturing 2.3% of the phone market. Apple also said iPhone builds remained healthy.
Still, there is no denying Apple is not immune to macroeconomic conditions. If the analyst is right, it looks like the slowdown has finally touched the tech darling and is going to hurt demand for its products evern more going further. While another analyst suggested the production "cut may not be as bad as it sounds if Apple had already ramped up delivery of the iPhone to countries outside the United States," it certainly doesn't paint a pretty picture either.
Investors have not reacted much to the news today as Apple shares closed down 0.59% at $106.96, but perhaps the 46% punishment year-to-date has been enough so far.
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Reader Comments (Page 1 of 1)
11-04-2008 @ 8:39AM
Beltway Greg said...
Check the "Fortune" article please:
http://apple20.blogs.fortune.cnn.com/2008/11/03/the-apple-analyst-who-couldnt-shoot-straight/
If you were in my class I'd give you a failing grade for effort.
Beltway Greg