Apple Inc. (NASDAQ:AAPL)‘s impressive run in the market came to a halt on the opening day of the week as the stock tumbled by a high of 6% much to the surprise of investors. During an interview on CNBC, Rosenblatt Securities Managing director, Brian Blair, attributed the drop to a sales report was making rounds, indicating that the Cupertino-based sales might be slowing down.
“We had retail sales that showed up late Sunday night early Monday morning suggesting that sales might have been down 10% or 11% from 2013. I think it was an opportunity for people to say you know this might be it for Apple Inc. (NASDAQ:AAPL); this might be it for tech for the year, “said Mr. Blair
Despite the drop, Blair remains bullish on Apple Inc.(NASDAQ:AAPL) turning in impressive sales for December heading into New Year with the first-quarter of 2015 also expected to be much better in terms of sales. The fact that Apple does not release monthly sales on its products makes it extremely difficult to get a clear view of how the company is performing.
Focus according to Blair shifts to analyzing the ability of Apple Inc. (NASDAQ:AAPL) to meet the increasing demand for iPhone 6 going forward.
“One of the key things that is going on right now is that Apple Inc. (NASDAQ:AAPL) cannot make enough iPhone 6 and iPhone 6 plus to meet global demand. The fact is it is still hard to get and as we get closer to Christmas I think that is going to continue not just in North America but throughout Asia and anywhere the phone is launched. I think as long as we see that it is going to be an indication that demand is strong and iPhone units are going to exceed expectation, “said Mr. Blair
The 6% drop in the market could, on the other hand, be as a result of investors trying to cash out on the stock that was trading at an all-time high according to CNBC’s Dan Nathan. The stock could also move up in the coming weeks as Apple Inc. (NASDAQ:AAPL) continues to sell more of the iPhone 6 with the ongoing unveiling in other key markets.
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