Apple’s stock is getting thumped again today.It started the day falling under $500 to $492. It’s only getting worse. As of 11:30 AM east coast time, the stock is now down 3% to $485.
Apple is still reeling from the report that it slashed iPhone parts orders because of weak demand.
This morning, Shaw Wu at Sterne Agee said the real reason for the supply cuts is: “(1) much improved yields meaning lower component builds and (2) supplier shifts.”
The market isn’t buying that explanation.
It seems to be listening to Nomura’s Stuart Jeffrey and Woo Jin Ho who cut their price target to $530 on weak iPhone demand and margin erosion.