Apple Supply Chain: Apple Supply Chain Chaos

Apple Supply Chain: For one reason or the next, Apple Inc. (NASDAQ:AAPL) cannot seem to get back on stable ground. Every time it appears that the Cupertino-based company is going to turns things around, something happens.

Apple Inc. (NASDAQ:AAPL) is actually the smart money’s second favorite publicly traded company but hedge funds have started dumping Apple in favor of a surprising financial stock (see which stock hedge funds are buying like crazy).

This time around, according to an article published by CNN Money, “several analysts reported that the company’s orders to its suppliers are down. According to Topeka’s Brian White, who monitors these things on a monthly basis, February’s report was the worst on record.”

While there is no way of knowing for sure if the data from these analysts is accurate, it had a negative impact on the company’s share price today.

Below are notes from a couple of well known analysts:

“Brian White, Topeka Capital: February Apple Monitor Sales Miss Seasonal Trends. Final February sales for the Apple Monitor fell by 31% MoM, much worse than the average 8% decline over the past seven years, or when excluding a January Chinese New Year, down 15%. The Apple Monitor delivered the worst February we have on record. Most of the preliminary Taiwan Monitors experienced weaker than average trends this February including Apple supplier Hon Hai Precision with a 25% MoM sales decline in February. Maintaining $888 price target.”

“William Power, Baird Capital: Concerns mounting near term. Checks by Baird’s semiconductor team suggest iPhone 5 and total iPad procurement orders near our shipment forecasts, but below consensus. This appears to be consistent with our growing demand concerns exiting Mobile World Congress and already below-the-Street estimates. Additionally, we now expect a higher mix of iPad Minis, negatively impacting revenue and margins. Maintaining $465 price target.”

No matter how you feel about Apple Inc. (NASDAQ:AAPL) right now, you have to be concerned with what analysts are reporting.

If the company’s orders to suppliers are down, what does this mean for the near term future of the Apple Inc. (NASDAQ:AAPL) share price? Share your opinion in the comment section below:

Check back here for more updates on Apple Supply Chain.

DISCLOSURE: I have no positions in any stock mentioned.

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