Here’s what took Apple down Wednesday — updated

Not for the first time, Nikkei Asian Review gave a signal to sell. (But so did Lindsey Graham and Bernie Sanders.)

From “Apple weighs delaying 5G iPhone launch by months, sources say” posted shortly before the close:

apple nikkei 5G delayALO ALTO/TAIPEI — Apple is preparing the ground to possibly delay the launch of its first 5G iPhones as the coronavirus pandemic threatens global demand and disrupts the company’s product development schedule, sources familiar with the matter have told the Nikkei Asian Review.

The Cupertino, California-based tech giant has held internal discussions on the possibility of delaying the launch by months, three people familiar with the matter said, while supply chain sources say practical hurdles could push back the release, originally scheduled for September.

“Supply chain constraint aside, Apple is concerned that the current situation would significantly lower consumer appetite to upgrade their phones, which could lead to a tame reception of the first 5G iPhone,” said a source with direct knowledge of the discussion. “They need the first 5G iPhone to be a hit…”

“Apple will make a final decision around May at the latest, given the fluid situation globally,” another person told Nikkei…

Suppliers have not been officially notified of a possible change in the production timeline, and Apple is even urging many of them to make up for time lost due to coronavirus-related disruptions.

“We are not giving it up yet. We are doing whatever we can to sort the issue out,” a person with direct knowledge of the matter told Nikkei.

“The discussion is still at an early stage, and the fall launch is not completely off the table,” one of the sources with direct knowledge of the issue said. “But the 5G iPhone could be postponed to 2021 in the worst-case scenario.”

My take: Apple is doomed.

See the Apple 3.0 Nikkei Asian Review archives

UPDATE: Not just the 5G iPhone. From Barron’s…

The Dow Lost Half Its Gains in the Final Minutes of Trading Because the Stimulus Bill Is Still Being Debated

14 Comments

  1. Aaron Belich said:
    lol, the circle of pump and dump FUD rolls on.

    4
    March 25, 2020
  2. Steven Philips said:
    An article on Axios said a survey indicated most people intend to spend a government payment on non-necessities. Now if only those payments would arrive around September, maybe Apple would be encouraged!
    (IF there was even any merit to this story.)

    5
    March 25, 2020
    • Fred Stein said:
      Cool – sarcasm. Already, I have seen that snack food shelves are depleted in the markets.

      0
      March 25, 2020
  3. Romeo A Esparrago Jr said:
    Thanks, Philip! I missed the Nikkei Asian Review otherwise and was thinking why the rise didn’t continue with Tim Cook’s announcement of successfully procuring the 10M masks for the US and continuing the effort for Europe. Sigh.

    1
    March 25, 2020
  4. Neil Shapiro said:
    Uh….

    “My take: Apple is doomed.”

    Uh….

    I suspect this was tongue in cheek near-sarcasm and indicated that you did not think much of the report on the delays or not think any delay would be a problem or…. What??

    2
    March 25, 2020
    • Gianfranco Pedron said:
      Hi Neil,

      It is safe to assume that, unless stated otherwise, whenever the phrase “Apple is doomed” is used within the confines of PED3.0 it is done entirely in a sarcastic manner. 😉

      4
      March 25, 2020
      • Neil Shapiro said:
        Yes, I know, you know, all here know that PED was using sarcasm. But, here’s the thing and the reason I posted my comment: Ya can’t trust a small percentage of the Technical Press. Particularly those in regional and smaller mass-markets. What I wanted to do with that comment was to have something here that specifically called it out as being sarcastic. Otherwise I saw in my mind’s eye two or three “journalists” cutting and pasting it into Financial front pages and/or unrespected but hungry for attention blogs hoping a deliberately misrepresented comment on their site would go viral. On the Internet there is no good Fame and bad Fame just Fame.

        0
        March 26, 2020
  5. Fred Stein said:
    Once Covid hit, I discounted the fall launch more than I had before. Before it was because 5G is not urgent. It is important long term.

    Getting new iPhones to high volume and insanely great quality requires flying the best talent around the globe. Apple won’t risk their best people nor their quality.

    Apple will sell 1 Billion 5G iPhones over the next five years. This fall matters only to short term thinkers.

    4
    March 25, 2020
    • Jerry Doyle said:
      @Fred Stein: I believe your comments have high merit. I too, always have felt similarly as you state you feel in your statements above.

      Additionally, unlike others on the forum, I do believe there is some merit to the Nikkei Asian Review article. I believe that Apple should move forward with manufacturing a supply of the new and innovative iPhone 12(s) before the Holiday period and accept backorders once demand outstrips supply. Tesla has shown us that folk will wait patiently for premium products.

      0
      March 25, 2020
    • Neil Shapiro said:
      I agree that the 5G launch is not important technically. But one thing I have not seen addressed is if Apple delays a launch like that then what happens to the users who are on a monthly plan with Apple where they basically pay in advance 12 installments on the promise of getting a new iPhone in a year? Could be lots of anger from that quarter.

      0
      March 26, 2020
  6. John Konopka said:
    The Dow futures are up a few percent now so maybe we’ll see a bounce back tomorrow.

    1
    March 25, 2020
    • Neil Shapiro said:
      The very best analogy I have seen ever about Apple stock prices was when PED compared watching the stock price to watching a dead cat bouncing in a fall off ledges and looking for predictions. In this case you can’t even see the upcoming ledges! Most of my 401K is in Apple stock so I am just waiting to see the kitty start screaming and spitting and coming back to life!

      0
      March 26, 2020

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