Who to Believe on Apple (AAPL) iPhone Demand?
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Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.7%
EPS Growth %: -18.0%
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There are mixed messages about the demand picture for Apple's (Nasdaq: AAPL) iPhone Monday.
DigiTimes, a great source on the Asian technology sector, reported printed circuit board suppliers are seeing a sharp 15 percent drop in fourth-quarter orders due in large part to fewer-than-expected orders from Apple.
According to the report:
Suppliers to Apple were informed that orders for the fourth quarter have been revised downward because of the sluggish US and Europe economies, the sources revealed.
This news seems almost in direct conflict with an announcement from AT&T (NYSE: T) demand for the iPhone 4S is at record levels with 200,000 preorders in the first 12 hours alone. In addition, Apple has reportedly sold out of pre-orders phones and is now telling customers they will have to wait until the official store launch this Friday, October 14.
So who do you believe?
Investors should look to the carriers on this. Keep in mind three U.S. carriers will now carry the iPhone (Sprint added), which opens up a whole other window for iPhone adoption. The iPhone already has the best satisfaction among customers, so the demand picture is pretty clearly in good shape and likely getting better, not worse.
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DigiTimes, a great source on the Asian technology sector, reported printed circuit board suppliers are seeing a sharp 15 percent drop in fourth-quarter orders due in large part to fewer-than-expected orders from Apple.
According to the report:
Suppliers to Apple were informed that orders for the fourth quarter have been revised downward because of the sluggish US and Europe economies, the sources revealed.
This news seems almost in direct conflict with an announcement from AT&T (NYSE: T) demand for the iPhone 4S is at record levels with 200,000 preorders in the first 12 hours alone. In addition, Apple has reportedly sold out of pre-orders phones and is now telling customers they will have to wait until the official store launch this Friday, October 14.
So who do you believe?
Investors should look to the carriers on this. Keep in mind three U.S. carriers will now carry the iPhone (Sprint added), which opens up a whole other window for iPhone adoption. The iPhone already has the best satisfaction among customers, so the demand picture is pretty clearly in good shape and likely getting better, not worse.
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