Apple stock took a bit of a hammering this morning, as it fell by more than $16 a share before rebounding.
There are two primary reasons for the fall. The first is disappointing reports from supplier Jabil Circuit, who cited a “shift in demand” thought to refer to the iPhone 5c, which the company assembles. This, in turn, led certain panicky investors to assume that iPhone 5c demand is not what it should be.
The other reason is the China Mobile deal — expected to have been announced today — which is still MIA. The carrier has said that it is still negotiating with Apple.
While stock did fall, it is worth noting that it has since rebounded somewhat — and that both explanations for the drop rely on hearsay. Jabil Circuit did not explicitly mention Apple as the client it was referring to and — even if this is the case — it could mean a purchasing shift on the part of consumers from the iPhone 5c to the iPhone 5s, that would actually be a positive for Apple.
The unannounced Apple deal with China Mobile, meanwhile, is thought to be imminent.
It seems that some Apple investors need to have another glass of holiday sherry and relax.
Source: Motley Fool