Too Much Of A Good Thing: Apple Shares Blunted By iPhone 5 Supply Chain Shortages

apple-stock-iphone-5Having blistering sales would never been thought of as a bad thing for Apple. But supply chain strains caused by unprecedented iPhone sales are starting to take its toll on Apple’s stock prices. Because rumors of the iPhone 5 have been around for so long, we’ve had years to contemplate its arrival. In the interim, you’ll recall multiple surveys and polls that suggested the iPhone 5 would go on to become the most successful smartphone in the history of the market. Heck, there was even one study that revealed that 35% of all consumers would eventually come to own an iPhone. With all of this in mind, it’s hard to believe that Apple is having supply chain issues in keeping iPhone units stocked on the shelf. But that is exactly what is happening — and the lack of a steady flow of inventory is actually taking its toll on Apple stock prices. I guess that there is such thing as “too many sales” if the company falls way short of meeting demand. The New York Times today reports that: “The scarcity of iPhone 5s is the main reason Apple’s shares, after bursting through the $700 mark in late September, have tumbled nearly 10 percent over the last several weeks, analysts say. On Tuesday, Apple’s stock closed at $635.85. Although it’s better for Apple that it appears to be suffering problems of supply rather than demand, both situations result in lost or delayed sales. Analysts who have poked around in Apple’s supply chain believe that the holdup could be the result of a shortage of the new displays that Apple is using in the iPhone 5. Apple’s online store now shows a shipping delay of three to four weeks for the new iPhone. 10% is no laughing matter for Apple, and while Cupertino may imagine that they’ll make up that ground on Wall Street once supply chains stabilize, it is a concern: the lack of planning may indicate to investors that Apple has grown too big in the marketplace, and that their hype outweighs their actual production. Of particular note, however, is that the sundry scandals that have marred the iPhone 5 early on in the press — such as the Apple Maps flap, the scratchy metal back, and now the purple flare issue with the new camera sensor, have appeared to do little to slow sales. It proves that the “bad press” that circulates in the tech media — something that admittedly engulfs us as iPhone enthusiasts — fails to reach the masses. And that’s a good thing for Apple, no doubt.