The Polish Fading on Apple (NASDAQ:AAPL) Shares

The Polish Fading on Apple (NASDAQ:AAPL) Shares

The Polish Fading on Apple (NASDAQ:AAPL) Shares


Shares of Apple (NASDAQ:AAPL) dipped Monday flirting with correction territory following a report that the company had told suppliers to scale back shipments of parts for its upcoming iPhone X.

Digitimes reported that Apple suppliers were shipping just 40% of the components originally ordered for the premium phone, which goes on sale in November.

That added to concerns on Wall Street about demand for Apple’s new devices after the launch last Friday of the iPhone 8, a less expensive model than the iPhone X, drew smaller crowds than previous launches.

Some investors saw the soft iPhone 8 debut as a sign that customers were holding out for the iPhone X, which boasts an edge-to-edge display and will sell in the United States for $999.

Amid a broad selloff in technology shares  Monday, Apple’s stock was last down 0.7%. It earlier fell as much as 1.8%, bringing its loss since a record high on 1 September to 9% close it correction territory.

Many investors define a correction as a 10% decliner. A stock in correction may be viewed as either a buying opportunity or as likely to fall further.

While the number of people queuing up outside Apple stores has dropped over the past several years with many buyers choosing to shop online, the weak turnout for the latest iPhone has partly been due to poor reviews.

Apple’s stock recently traded at 13.8X expected earnings, its lowest valuation since February, according to Thomson Reuters Datastream.

Over the past 2 years, Apple’s average forward PE/R (price-to-earnings ratio) has been 12.6X.

Apple did not respond to a request for comment.

HeffX-LTN Analysis for AAPL: Overall Short Intermediate Long
Neutral (0.04) Neutral (-0.17) Neutral (0.02) Bullish (0.26)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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