Apple cuts orders to create recovery

Apple chip suppliers tumbled Today on Wall Street after the iPhone 6S maker reportedly cut its November orders by about 10% to orders because of waning Asian demand for the phone.


Although many expected them to make the┬ácuts, they were “sooner and much deeper” than anticipated. Most expected it to occur in December and be about 5%.

Apple and its suppliers dropped in midday trading.

It should be noted that Apple also upped its fiscal 2016 capital expenditures guide to $15 billion vs. the $13 billion outlook it had months ago for fiscal 2015 (of which only $11.2 billion was invested). Overall the guidance pattern suggests that a 25% upside to iOS units and provides some evidence Apple may launch the theoretical iPhone 6c. Like the 5c, the 6c would come in at a smaller price tag of $400-$500.



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