Apple Sinks on iPhone Cutback Talk
Updated from 12:33 p.m. EDT with new stock price
Another round of rumors is taking the shine off Apple's (AAPL) iPhone.
Apple shares took a 3.5% dip Tuesday to $136.47 amid speculation about a cut in production of the trendy iPod-inspired phone. The chatter that sent the stock down was that Apple was reducing its production of iPhones from "9 million units to 4.5 million units," according to a note from the stock trading desk at Miller Tabak & Co.
The trading note, issued in an attempt to explain why Apple shares were down in heavy volume despite a lack of apparent news, cites talk on Wall Street and also points to speculation that the cuts may be coming in iPod production.Apple didn't immediately return calls seeking comment. The news comes a day after Verizon (VZ) reported that there was an initial surge in customer defections to rival AT&T's (T) during the iPhone introduction, but the following weeks saw a return to normal. Verizon says it is now signing up two customers to every one it loses.
|Want more? Check out TheStreet.com TV video. Scott Moritz tackles the iPhone rumors driving down Apple's stock.|
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV