Apple just unleashed the iPhone 5 on China today so things should be going really well for the company on Wall Street as well, but they’re not. According to initial reports, the debut of the iPhone 5 has been somewhat muted thanks to a snowstorm hitting Beijing and a pre-order requirement to prevent rioting.
Adding to Apple’s pain, the company’s stock hit a 10-month low today and is trading at $511.58 – the lowest its been since February.
As a result of Apple’s stock price falling, UBS analyst Steve Milunovich reduced his target estimates for the stock down to $700 from $780. Many analysts still think APPL is a good stock to buy, but they’re being cautious.
Hurting Apple’s stock further, analyst Peter Misek from Jefferies has been researching Apple’s supply chain and says that iPhone component suppliers have seen larger order cuts over the last 24-48 hours because of assembly execution issues.
Misek claims that demand isn’t an issue for the iPhone 5 as inventory is still limited at retail locations, but Apple simply can’t make the iPhone 5 fast enough to meet some analysts’ shipment expectations for Q1.