Originally Posted by GUMBIE
UBS analysts: Apple iPhone component order reduction ‘old news’
Monday, January 14, 2013 · 10:17 am
“UBS analysts are out Monday with a note commenting on reports Apple has cut component orders for its iPhone 5 model,” Tom Bemis reports for MarketWatch.
“Analysts Steven Milunovich, Peter Christiansen and John Roy cited Monday’s report in The Wall Street Journal,” Bemis reports. “‘The article says Apple notified suppliers of the cut last month, which is when we and most of the Street reported it. Consequently, it appears this is old news — our analysts indicate no changes since,’ the UBS analysts wrote.”
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Reports of Apple slashing orders for iPhone 5 parts on weak demand is not a surprise, and Apple will still hit $800, a senior technology analyst for Jefferies told CNBC's "Squawk on the Street" on Monday.
"It doesn't change anything; we think it's old news. We think all of these cuts happened in around mid-December," Peter Misek said.
"But there were hopes that it would be better than that. There were hopes that in Q1 that sales would be flat and instead what we're getting is a seasonally type decline in Q1."
Misek said though iPhone 5 sales were impressive in the fourth quarter, the success of the phone just didn't carry over strongly into the first quarter.
"We look at it as a little bit of a letdown obviously. It's not great that this happened.