Analyst Shaw Wu of Stern Agee drops the target price for Apple stock down to $630 from $715 citing low orders in Apple’s supply chain in the past two months. Evidences are strongly pointing towards Apple going for a refreshed model of iPhone with iPhone 5S and potentially a low cost version of the iPhone as well which might be the main reason for cut down in orders for parts. Nevertheless, the ongoing trend of Apple’s stock crash and supply chain demands are prompting many analysts to cut down the target price for Apple stock.
Apple’s stock has slid down by 40% from its all time peak price in the past few weeks and is continuing to crash. Analysts predict the trend to continue till the end of this current quarter or may be till next quarter but Shaw Wu says that Apple might not do all that bad either, it might still reach its targets as expected.
Tim Cook, Apple’s CEO, earlier cautioned that Apple has a complex supply chain with parts coming in from various manufacturers in various quantities, the data leaks happen from few points only which does not give a holistic picture of what the company is capable of or how the company is performing. But this does not stop Analysts to give out their predictions in anyway. Apple is generally quite secretive in all aspects of its supply chain and manufacturing but it still is not able to plug all the information leaks lately.