In case you are wondering why the stock gapped down as much as 3%. Credit
Suisse came out this morning citing supply chain data that Apple is cutting
iPhone production...blah blah blah.. leaving December quarter iPhone #
intact, cutting march quarter iPhone #. Yet left the price target intact and
advised folks to "buy on the dip".
My take:
supply chain data are notoriously unreliable in predicting apple's future
business. Also note that no one except for apple itself has a complete
picture of the whole supply chain. Nonetheless, it does not prevent analysts
from utilizing the data as the basis for their calls. These kinds of calls
come out from time to time, and the motive behind them are highly suspicious
-- it all comes down to who are the clients Credit Suisse is serving and
what the clients' short term agenda is.
If you choose to trust someone named Kulbinder Garcha, you would not know
what to do. Because he is bearish in cutting estimates, but at the same time
encourages you to buy on the tip... very actionable analysis, huh?
Apple already provided guidance for the December quarter, so Garcha can not
bullshit there. But since March quarter was not in the forecast, which left
plenty of time/room for manipulation.
If you are bullish on AAPL long term, but missed your chance to jump in,
here is the pullback you have been waiting for to start accumulating.
