Sterne Agee notes AAPL getting hit because of the headlines from Consumer
SMF has already been short the name and have already worked out the numbers that can take it much lower moving forward
Sterne Agee notes AAPL getting hit because of the headlines from Consumer
Reports that the iPhone4 signal issues are hardware related. Also market
concerns that AAPL might now have to do a product recall on the iPhone4. Firm
believes total one time replacement costs for AAPL: <$100 mln on a
quarterly revenue run rate of $13-15 bln.
Key for AAPL is it needs to get fixed, ahead of the peak BTS and holiday season. It could create a near-term hiccup in the supply chain if it is really a hardware issue and needs redesign: for component suppliers SNDK, CEVA, SWKS and CRUS. But any major pullback should be viewed as a buying opportunity.