UBS: Apple cutting orders for Apple iPhone 5 parts is old news; shares rebound after breaking $500

UBS: Apple cutting orders for Apple iPhone 5 parts is old news; shares rebound after breaking $500
Shares of Apple briefly dropped under $500 on Monday, breaking a major support level on a WSJ story that said that Apple had cut orders for displays and other components because of weak demand for the Apple iPhone 5. But shares of the stock rebounded off the lows after investment house UBS said that the news cited by the WSJ was old and that the cuts in orders for displays and components related to the Apple iPhone 5 actually took place in December. Analyst Steve Milunovich told his clients in a research note on Monday that "Consequently, it appears this is old news—our analysts indicate no changes since."

Last month, UBS cut its estimate of Apple iPhone production by 5 million for each quarter because of a 30% production cut  That took the UBS estimate for Apple iPhone 5 production down to 25 to 30 million units for the current quarter ending in March. Milunovich estimates that Apple produced 45 million Apple iPhone 5 units in the previous quarter that ended in December and says that there could be an upside surprise when Apple reports earnings for its latest quarter on January 23rd.

The analyst sees Apple caught between peaking growth and margins, and a low valuation. He says that a tech stock's momentum usually rules which means that Apple could drop further. Still, Milunovich sees a strong December quarter and with the stock trading at just 8 times forward earnings, the analyst has kept his buy rating with a target of $700.

Esrlier on Monday, the stock briefly dipped below $500 at $498.51 and has come off the lows trading now at $505.04, off $15.26.

source: Forbes

Related phones

iPhone 5
  • Display 4.0" 640 x 1136 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A6, Dual-core, 1300 MHz
  • Storage 64GB
  • Battery 1440 mAh(8h 3G talk time)



1. TheLibertine

Posts: 484; Member since: Jan 15, 2012

I do not care much about the commercial aspect of the mobile tech world, despite it being so crucifial. What i am looking forward is to products.

18. nofear

Posts: 151; Member since: Jun 22, 2012

You are not wanting to hear the truth.

21. MeoCao unregistered

Bouncing back? Apple is down 3.6% at the moment

28. AnTuTu

Posts: 1624; Member since: Oct 14, 2012

End of an era coming soon. A company shouldn't be arrogant, selfish but should be respectful towards other tech companies. I hope someone would learn a lesson soon.

2. darkkjedii

Posts: 31753; Member since: Feb 05, 2011

I wonder what's going on at apple.

6. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

It's not Apple, it's the customers/endusers. There is not that much demand for the iPhone 5, it's simple as that. People are discovering that there are better smartphones out there.

8. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Exactly. I'd pick up a One X+ for $199 instead of an iPhone 5. Why? 64GB vs. 16GB, better software, more customization, etc.

9. syedzain

Posts: 175; Member since: Oct 08, 2012

I agree other platforms are best at customization... but related with the apps...Nothing can beat IOS apps... as i have been android and ios user. Android = best customization+ Compatibility+Camera IOS= Design+Camera+fluid+apps collection.

14. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

Android = Camera ???

22. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

I don't understand what you want to say by posting this link?

40. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Ninetysix, read this reviews there are 5 top camera phone including the iphone but for you it might as well be one iPhone

23. PhoneArenaUser

Posts: 5498; Member since: Aug 05, 2011

How can Android be = Camera if Android is Operating System and Camera is Hardware ???

19. MeoCao unregistered

JB now is very smooth too, and has much better control and intuitive real multi-tasking unlike iOS. main apps now are as good on Android as on iOS, the only real advantage of iOS now is iTunes: better collection, lower price. But Google Play is catching up fast. And then Android has absolute advantage in choice and affordability.

20. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

I am so tired of that. Look ALL the best apps in the world are available for BOTH Android & iOS. You are speaking like it's 2009 or something. Have you tried Android 4.1 Jelly Bean? It's just as fluid as iOS. This is 2013, things have changed since 2009. lol

24. XPERIA-KNIGHT unregistered

yea, pretty much...........and you know whats kind of annoying? (not saying that this is soley his fault) but its the "unaware" things stated, like in his comments that paint a very "mis-informed" and wrong attitude towards you mentioned superandroidevo, it would make us (android) seem as if we havent gained any progress since 4 years ago :( and most of know that is far from the truth

29. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

It's these people who claimed they have used BOTH Apple & Android. This maybe true but what Android version have they used. Please don't say Android 2.3 Gingerbread. lol +1

27. mwebber473

Posts: 5; Member since: Aug 24, 2011

This is true, I've used both an iOS is a faster and more stable OS. I find myself way too often having to remove the battery from my Bionic because the phone is frozen on some app. I rather have a phone that works when i need it to than to have the flexibility to add widgets, and other customization features. Furthermore the apps on the iPhone are superior to those of the Android. Although the gap is closing slightly the difference is still quite noticeable.

34. androiddownsouth

Posts: 598; Member since: May 02, 2012

The Bionic isn't the best phone to compare to say an iPhone 5. Even I will tell you it is better than the Bionic. That said, the Bionic does not have the power of the newer devices out now nor does it have Android 4.1. 4.1 is extremely smooth. I have the DNA, and not once have I had this device freeze, or have to be reset in any way. As for the app difference, I disagree with you. My fiancee has an iPhone and the apps we use, including some of the same games, are identical in operation and quality. What you say may well be true compared to your Bionic, but I beg to differ as it compares to more updated devices.

30. tedkord

Posts: 17509; Member since: Jun 17, 2009

Every app I use that both platforms have is just as good on my Android phone as on an iPhone. The biggies are Netflix, Sling Player. Gmail and maps are both better than on the iPhone platform. Two years ago, yes. Sling player sucked then. But as in every other area, Android made huge strides, and iOS stayed mostly static.

48. darkdroid

Posts: 44; Member since: Sep 13, 2012

ya probably , but you should know playstore has more apps than appstore and about fluidity ,jellybean is more fluid and functional than ios6 which came with so called hidden "200" features

3. ilia1986 unregistered

I don't care if it's old news or new news - it's great great news. >:D

45. stealthd unregistered

It's straight up naive-fanboy Christmas!

4. _Bone_

Posts: 2155; Member since: Oct 29, 2012

I would buy a 5" fullHD Apple phone, let's see what PA fans have to say about this!

7. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Never going to happen. Why? Apple doesn't believe in using standard resolutions. If they're going to put a high area display on a phone, then they're going to increase it to a "unique" resolution. (1136x640)

10. syedzain

Posts: 175; Member since: Oct 08, 2012

if its above 4.3 inches then its not a phone in my opinion.. if u like that much screen go buy urself a new laptop.

13. sats.mine2k4

Posts: 208; Member since: Aug 10, 2012

sure go ahead nobody is stoppin ya!!! good luck carrying a laptop in your pocket... for the more sensible they have Android...

32. tedkord

Posts: 17509; Member since: Jun 17, 2009

Where can I get one of these imaginary 4.5" laptops?

37. faisolbauuz

Posts: 121; Member since: Jan 05, 2013

If apple release a 4.3/4.5 inch iphone 5s will you still buying it? Probably yes

46. -SEUL8TR-

Posts: 113; Member since: Jan 13, 2013

Go away..

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