After a slam of reports regarding weaker-than-expected iPhone 5 demand, Apple shares are on the decline. On Tuesday, shares of Apple opened below $500, right after the company's stock fell to its lowest price in 11 months on Monday.Apple cut its iPhone 5 screen production in half, according to a report from Nikkei. Immediately following the negative news, investors reacted accordingly, bringing Apple shares down to $488.27. It didn't take long for them to begin bouncing back, however, as they are now hovering just above $491 -- still not great.
The sudden two percent increase may have to do with some analysts smoothing out the details of Apple's cutbacks on iPhone 5 parts. It's like this: Just because Apple cut back its orders, doesn't necessarily mean it's preparing for a weaker demand. While that could be part of it, it could also mean a number of other things, like that production has become more efficient, for one.
And before we start worrying that things are getting glum for Apple, let's be real -- the company is nowhere near in a dire position. Just take a look at this data from Marketwatch, which shows Apple's average target share price at $735 over the next 12 months. Some analysts, like Stern Agee's Shaw Wu, are convinced that Apple will even go above that, jumping well over the $800 mark in the next year.
Source : http://www.knowyourcell.com/
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