Dow falls 500 points, dragged down by Apple

CNN Business ^ | 11/19/2018 | By Paul R. La Monica, CNN Business

[Red Badger]

New York (CNN Business)Stocks fell sharply Monday, dragged down by reports that Apple's newest line of phones may not be selling as well as Apple or its investors had hoped. The Dow fell more than 500 points and the Nasdaq tumbled 2.8%. Apple's stock fell once more after the Wall Street Journal reported that Apple has cut orders for its iPhone XR, iPhone XS and iPhone XS Max. The new iPhones, which Apple unveiled in September, cost more than previous versions. The $749 iPhone XR is the least expensive new iPhone, but it costs $50 more than last year's cheapest model, the iPhone 8.

The iPhone XS Max can cost up to $1,449. The higher prices -- without many more features -- could be driving customers to keep their current phones longer or buy last year's models. Apple declined to comment about the Journal story or broader concerns about iPhone demand. Shares of Apple fell 4% and have now plunged about 20% from the all-time high it hit a few months ago, when Apple (AAPL) was worth more than $1 trillion. The stock ended a 5-day losing skid on Friday after an analyst at Morgan Stanley suggested that the supplier concerns are overdone. Apple, which is a member of the Dow, was hurting the blue chips too. Several makers of chips and other components used in iPhones have warned of soft sales and profit in recent weeks, citing sluggish demand for higher-end smartphones. To that end, shares of Apple suppliers, such as Qorvo (QRVO), Broadcom (AVGO), Cirrus Logic (CRUS) and even Apple's key Anrdoid phone rival Samsung were all lower Monday too. Samsung also makes chips for iPhones.

[Red Badger]

Because...........................Apple..................

[sparklite2]

Think of it as, “Wall Street is having a sale.”

[editor-surveyor]

.
Its just the 5th generation system that’s at fault.

Nobody in their right mind would want to own one.

They’re absolutely deadly.

[MountainWalker]

I bought my wife a used iPhone X, but I think I’ll spend $1500 to upgrade her to the XS Max since that’s waterproof to 2 meters versus her X’s 1.5 meters. Also, her friends with XS Maxes are teasing her about her phone’s poorer benchmark scores.

[editor-surveyor]

.
I just replaced the battery in my S5.

It wasn’t a total mess, but was showing significantly shorter life.

[cll]

I have an iPhone 6S which works just fine. DW dropped hers on in the toilet so she got a new XR and for the life of me I don’t see any reason to make the leap, even from 4 versions removed.

[Alas Babylon!]

Uh-oh!

Is Rush on today?

Because if he is, he’ll spend most of the day defending Apple.

[Deo volente]

I bought an LG Optimus phone four years ago (an android phone) and paid $49 after the instant $110 rebate.

The phone’s been fine and I don’t miss any of the fancy iPhone features. I’m not paying a thousand dollars for a phone.

[palmer]

I don't see any reason to make the leap, even from 4 versions removed.

Just drop the old one in the toilet.

[SunkenCiv]

The stock ended a 5-day losing skid on Friday after an analyst at Morgan Stanley suggested that the supplier concerns are overdone.

And that is true.

• Since the Q results, one big shot investor sold his AAPL holdings, saying that Apple's having told him they would no longer report units sold was a bridge too far.
• Profits rose in the face of fewer units sold, because of the higher price.
• In recent years, Apple has reduced projected sales numbers internally and trimmed its parts orders, so that there wouldn't be a large unsold inventory later on.
• The company returns value with stock buybacks, and since 2012 has paid a (pretty tiny) dividend.
• Before the one-time repatriation tax cut, a complaint was that Apple was paying for both via debt, because debt was cheap and easily serviced with future cash.
• The 52-week high was $233 and change, and I believe that's also the all-time high. The price current a minute ago reflects a $46.86 decline from that high.
• The share price will recover lost ground, particularly as the next Q results approach.
• Lots of Christmas sales, usually, and that will be in the Q results.
• Belief that broccoli and exercise will improve and extend life drives the young up-and-comings, I remember falling for that too, and it also drives Apple Watch sales. Personally, I'd have to be threatened with a loaded gun to plunk down money for one of those.
• Apple's most recent product rollout included a refresh of its iPad, MacBook, and (surprisingly) MacMini lines.
• Apple's next product rollout rumored to include another refresh of MacBook Air (i7 version).
• Amazon is expanding its Apple line (not including the HomePod, which allegedly competes with Amazon's Echo devices).
• And no, I haven't bought an Apple product (other than a keyboard) in 20 years.
• And no, I don't work for Apple.
• And I'm not currently invested in Apple, but am likely to be prior to the next Q results.
• "Me not like Apple" isn't a sound investment approach.

Thanks Red Badger.

[Red Badger]

Belief that broccoli and exercise will improve and extend life drives the young up-and-comings, I remember falling for that too, and it also drives Apple Watch sales.

All that does is give you gas.................

[Yaelle]

We were trick or treating and one parent had the new phone. We took photos and my old iphone7 only got blurry photos in the dim light. Her new one took great keeper photos with (I think it’s artificial but still) bokeh behind the subject, very nice. So yeah, I kinda want one. But not enough to actually buy it. ;)

[Red Badger]

At some point people say, “I don’t NEED this.”.....................

[Red Badger]

As long as it’s not a ‘Going Out of Business’ sale...............

[dfwgator]

[Leaning Right]

> Why does anyone with a recent version of an iPhone need a new one? <

For many younger folks, bragging rights are involved. “I see you have the iPhone XS Max. Well, you should check out the iPhone XS Max 2. That’s what I have.”

[Kommodor]

I bought a 6s just after the announcement, because I don’t want to be stuck without a 3.5mm audio jack. I plan on running it until the wheels fall off, or whatever the equivalent is.

Things are good enough. Don’t see the need to spend beaucoup bucks every year for n% improvement.

[Yaelle]

That would be me.

[SunkenCiv]

Hey, if it gives you gas, you should start wearing it on your wrist instead.

[Red Badger]

I plan on running it until the wheels fall off, or whatever the equivalent is.

Battery no longer charges and the phone slows to a crawl................as it's designed to do............B^(