Forget Bill Murray. It's Groundhog Day, starring the iPhone 5c.
The Wall Street Journal is out with an eerily familiar report that Apple is cutting its iPhone 5c orders from suppliers in response to weaker-than-expected demand. That echoes a similar report from January of this year, when the WSJ had a similar report on iPhone 5 build plans that promptly knocked shares down by 4%. In that case, Apple did end up reporting iPhone unit sales that missed lofty expectations, but its figures were hardly poor in the grand scheme of things.
Tim Cook has explicitly warned investors against believing all the supply-chain rumors that get disseminated. Even if any individual data point -- a big if -- were accurate, Apple's supply chain is so large that it's impossible to use that information as a proxy to arrive at the bigger picture. For what it's worth, investors seem to have taken his advice to heart, as shares closed modestly higher today.
The WSJ report also suggests that iPhone 5s orders have been increased. While both aspects of this report should be questioned, investors should be happy if demand is indeed being focused primarily on the flagship iPhone 5s. That would suggest that Apple has some potential margin upside, if it can catch up to demand.
In this segment of Tech Teardown, Erin Kennedy discusses the WSJ report with Evan Niu, CFA.
Be a smarter Apple investor
If someone asked you, "Why invest in Apple?" could you truly answer? Few investors could. That's because most of the company's secrets -- the ones that make savvy market watchers rich -- often fly under the radar. If you want an edge on other Apple investors, be sure to check out "5 Secrets to Apple's Future" from The Motley Fool. This 100% free guide includes actionable advice that you can put to use right now! Just click here now for instant access!
The article Is Apple Truly Cutting iPhone 5c Orders? originally appeared on Fool.com.Erin Kennedy and Evan Niu, CFA, both own shares of Apple. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.