IPHONE PRODUCTION CUT!! A 50% cut!!!! Say it aint so....

[S2007S]

IS the hype done with, can we move on now. AAPL is cutting production by 50%, that is not good news especially for all those true AAPL fans. The hype is over....











The shine is quickly coming off Apple's (AAPL - Cramer's Take - Stockpickr - Rating) iPhone.



Apple shares took a 3% dip Tuesday amid about a cut in production of the trendy iPod-inspired phone. The chatter that sent the stock down was that Apple was reducing its production of iPhones "9 million units to 4.5 million units," according to a note from Miller Tabak & Co.

The note cites talk among traders at Goldman Sachs and also includes speculation that the cuts may be coming in iPod production.

Apple shares fell $3.58 to $137.85, while telco partner AT&T (T - Cramer's Take - Stockpickr - Rating) saw its stock drop 18 cents to $39.59.

Apple's chip vendors could also see some jitters if the rumors are true. Analysts have identified some of the key component suppliers include Broadcom (BRCM - Cramer's Take - Stockpickr - Rating), Texas Instruments (TXN - Cramer's Take - Stockpickr - Rating), Marvel (MRVL - Cramer's Take - Stockpickr - Rating), Micron (MU - Cramer's Take - Stockpickr - Rating) and Skyworks (SWKS - Cramer's Take - Stockpickr - Rating), among others.

 

[mark77418]

where did you hear this? I would bet this is only a rumor.

 

[S2007S]

Quote from mark77418:

where did you hear this? I would bet this is only a rumor.

yep its only posted under yahoo news as a rumor....

 

[stock_trad3r]

There was a nasty doubletop in the morning before it dove into the red

3% isnt a big deal though if you're a long term holder

 

[Comanche]

stock, you are about to become the fool in the old saying "a fool and his money...."

wisen up and ring the register.

 

[SCI new york]

You guys are all fools. That's why on the street there is something called "smart money" you're obviously not a part of it.



"There is unconfirmed chatter that iPod production is reduced. That is why the option volatility in Apple is elevated suggesting this uncertainty," said Paul Foster, options strategist at Web information site theflyonthewall.com.

Apple's August option implied volatility -- which measures as a percentage how much the stock will move up or down over a rolling 12-month period -- stood at 43 percent early on Tuesday, above its 26-week average of 37 percent, according to market research firm Track Data.

"There are occasional rumors on Apple, often unconfirmed. A lot of them end up being wrong or short-term," said Shaw Wu, an analyst with American Technology Research.

He noted that Apple confirmed last week it expected to sell more than 700,000 iPhones in its current quarter and 10 million next year.

"As I understand it, iPhone production actually has been going up, since they obviously are going to ship a lot more than what they did in the first two days," Wu said.

Apple stock was down $5.02, or 3.6 percent, at $136.41 in late afternoon trading on Nasdaq after falling as low as $134.18 in the session.

Since Apple announced the iPhone in early January, the stock has risen nearly 60 percent.

 

[scriabinop23]

This aapl selloff is not about aapl. This was absolutely propogated by the short side wanting some good leader-killer news to help drag the entire market down.

It led. Poole talked, and some alt-A got hit.

Shorts are in control.

 

[stock777]

you think a jump from 37 to 43 in iv , given this volatile market means insider info?

lol, how dumb is that

 

[cweb]

I bet it's a rumor. Where did u find it?

 

[scriabinop23]

Quote from stock777:

you think a jump from 37 to 43 in iv , given this volatile market means insider info?

lol, how dumb is that

that is goofy.

i think by virtue of every bear rumor in aapl failing in the past, calls by nature would be bid up. and by nature of the synthetics existing and being arbable, puts too.