Bloomberg report clobbered Apple and its suppliers overnight Wednesday

From Debby Wu and Takashi Mochizuki's "Apple Ditches iPhone Production Increase After Demand Falters" posted late Tuesday:

Apple is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize, according to people familiar with the matter.

The Cupertino, California-based electronics maker has told suppliers to pull back from efforts to increase assembly of the iPhone 14 product family by as many as 6 million units in the second half of this year, said the people, asking not to be named as the plans are not public. Instead, the company will aim to produce 90 million handsets for the period, roughly the same level as the prior year and in line with Apple’s original forecast this summer, the people said.

apple clobbered bloombergApple shares fell as much as 3.3% in pre-market trading on Wednesday. US stock-index futures also turned lower after the news, with contracts on the Nasdaq 100 down as much as 1.5%.

In Taipei, key chipmaker Taiwan Semiconductor Manufacturing Co. fell 2.2% and Apple’s biggest iPhone assembler Hon Hai Precision Industry Co. was down 2.9%, amid a wide selloff of electronics suppliers. ASML Holding NV, maker of advanced chipmaking gear, dropped as much as 3.2% in Amsterdam.

My take: Pre-earnings FUD? In any case, as Peter Elstrom tweeted, 90 million ain't bad...

12 Comments

  1. Adam Foster said:
    “according to people familiar with the matter”

    3
    September 28, 2022
    • Bloomberg is notoriously unreliable as a source for tech industry news. It wasn’t always that way.
      I stop reading most articles when the ‘journalist’ refuses to offer any clue about source. The phrase “according to people familiar with the matter” includes a farmer I know that bought some Apple shares a few years back after his beekeeper suggested he do so. The farmer even reads this source (Apple 3.0) now. He’s made way more on his Apple position than his actual apple, pear and persimmon trees so he stays informed about the fruit he can “harvest anytime he wants!”

      4
      September 28, 2022
  2. Arthur Cheng said:
    this is as regular as clockwork. As long as the governing body won’t do anything to control this kind of “trash and buy”, the opposite of “pump and dump”, the people will continue to do it.

    You can look at it as buying opportunities.

    7
    September 28, 2022
  3. Greg Lippert said:
    I made a fortune gambling in Vegas on the timing of this “unnamed sources” report. Ha!!!!

    1
    September 28, 2022
  4. Gregg Thurman said:
    I rarely, if ever, make a buy/sell decision based on reports from the print media.

    Their “reports” are always out of context, “reliable sources” are always other media outlets, and all such reports are click bait.

    Oh for the good old days when reporting was in limited print space, and was held to a higher standard.

    4
    September 28, 2022
  5. Fred Stein said:
    Unreliable and irrelevant.

    Unreliable as noted by friends above.

    Irrelevant since model mix increases revenue and profit.

    3
    September 28, 2022
  6. Aaron Belich said:
    How long till we see the Digitimes reporting making similar claims?

    I say within two weeks. Maybe one.

    0
    September 28, 2022
  7. Michael Goldfeder said:
    The SEC need to start looking into these planted stories that are all orchestrated by those who are shorting this stock. It’s obvious manipulation and although Apple and probably Buffett are in the market buying up these discounted shares, this happens every week with regularity that is patently obvious to every long term shareholder.

    2
    September 28, 2022
  8. Rodney Avilla said:
    2 things seem amazing to me:
    1. How many investors have knee-jerk reactions to unverified rumors;
    2. How many investors apparently read/listen to Bloomberg.

    An ancient proverb says “the simple believe every word, but the wise look well into the matter.”

    1
    September 28, 2022

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