This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Why Are Apple Shares Getting Killed? (Update 1)

Update from 11:11 A.M. to include analyst comments regarding de la Vega's comments in sixth paragraph.

NEW YORK ( TheStreet) Apple (AAPL - Get Report) shares are getting taken to the woodshed Wednesday on reports of a margin hike at one clearing firm and concerns over component supplies falling next year.

The Cupertino, Calif.-based Apple is down nearly 5% early Wednesday, and traders are searching for an answer as to why the world's largest technology company is trading like a small-cap. Street Insider reported that COR Clearing has raised its margin requirement on Apple, moving from 30% to 60%, "citing a 'high concentration'" of ownership.

As if a margin hike wasn't bad enough for shareholders, there are concerns that components for Apple may fall as much as 20% sequentially, according to DigiTimes. DigiTimes has been spotty with its Apple rumors in the past, but a slowdown in component supplies could be a worry that demand for Apple's products are not as robust as once thought.

CNBC producer John Melloy noted that other clearing firms are not following suit, per his sources.

That appears to contrast with what AT&T (T - Get Report) Mobility CEO Ralph de la Vega is seeing. At a media conference in New York, de la Vega said Apple's business is "growing faster than ever."

Raymond James analyst Tavis McCourt believes de la Vega's comments are bullish, and likely to alleviate fears of upgrades. "As it relates to global iPhone sales, we still expect the U.S. to represent only about one-third of global sales, so it is difficult to draw too much of a conclusion from this data, but certainly de la Vega's commentary appears to have squashed any existing fears of sluggish upgrade demand for the iPhone 5 at AT&T," McCourt wrote in a research note discussing Apple.

A decline in component supplies that much would suggest that Apple is approaching a period in which new products may be scarce, as Apple revamped its entire product lineup in 2012, most of it coming in the back half of the year. In June, Apple refreshed its MacBook Pro line at its Worldwide Developer Conference, which TheStreet covered live.

September saw the announcement of the iPhone 5 and October had a huge product refresh with Apple announcing a new iPad, iMac, Mac Mini, and iPad mini.

Apple could not be immediately reached for comment for this story.

Shares were down sharply, off 4.24% to $551.45, in mid-Wednesday trading.

Interested in more on Facebook? See TheStreet Ratings' report card for this stock.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $124.43 0.00%
T $32.65 0.00%
FB $82.22 0.00%
GOOG $548.00 0.00%
TSLA $188.77 0.00%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs