Sport & Auto
- About Future
- Digital Future
- Cookies Policy
- Terms & Conditions
- Investor Relations
- Contact Future
Apple won't announce quarterly earnings until Tuesday afternoon, but a new report sheds light on why suppliers -- as well as investors -- are growing increasingly frustrated with the iPhone maker.
On Sunday, Reuters published a look at how Apple's reputation has become tarnished not only on Wall Street, but also with Asian suppliers who frequently refer to the company as "Poison Apple" thanks to a toxic mix of high product quality expectations and rock-bottom prices.
The frustration seems to have reached a boiling point as suppliers are in a holding pattern waiting for the next iPhone to be manufactured, a process initially expected in June. Sources claim that date is now in flux, reportedly because Apple has yet to find the right "coating material" for a fingerprint sensor widely been rumored to be a new addition to the so-called "iPhone 5S."
The timing couldn't be worse, as anticipation builds for the next iPhone and analysts call for slower growth with Apple's product lines after big gains in 2012. While some claim a stall in growth is "inevitable" considering the size of the company, investors are bracing for the worst.
Others point to the "irrational" predictions made about Apple last year, when a handful of analysts claimed the company's stock price could reach $1,000 per share -- a price that appears unlikely anytime soon now that AAPL has dipped below $400 for the first time in nearly three years.
"The market is not being irrational with Apple today," remarked an unnamed hedge fund manager. "The market was being irrational with Apple last year, when they kept taking the stock price higher."
Follow this article’s author, J.R. Bookwalter on Twitter