Mac Supply Chain: When it comes to Apple Inc. (NASDAQ:AAPL) news, you can always count on DIGITIMES to provide quite a bit of action. While they are not always correct, it is important to pay attention to what this outlet is reporting.
Here is one of the most recent reports, stating that Apple has stopped placing Mac component orders.
Before we go any further with this particular Apple Inc. (NASDAQ:AAPL) story, it is important to note once again that DIGITIMES is not always accurate when releasing reports such as these.
In fact, we took a closer look at its accuracy record yesterday in this piece. In other words, you should take what you read with a grain of salt.
The short and long of the story is that Apple has stopped placing component orders for its Mac lineup of products. To go along with this, “related upstream suppliers so far have not yet received any word about when the US-based vendor will resume its orders.”
If you are wondering where this information is coming from, the article claims a source from an unnamed upstream supply chain.
Here is more from the Apple Inc. (NASDAQ:AAPL) article:
“The suppliers originally expected to finish digesting their Mac inventories in April, but are now stranded waiting for further instructions from Apple.”
“The sources revealed that Apple’s Mac orders to the supply chain dropped to almost nothing after the Lunar New Year holidays. Apple had high hopes for its Mac product lines and placed aggressive orders at the end of 2012; however, the company is now badly affected by the decision.”
If this is true, many are going to wonder what the problem is. Why is Apple Inc. (NASDAQ:AAPL) running into such issues? One of the reasons for this could be the fact that the Cupertino-based company underestimated just how much of a decline the PC market is facing. Of course, this is a win-lose for the company since its tablets are picking up the slack.
MacRumors weighed in on this rumor, adding some information on why this could be a problem for the company:
“Apple frequently has to juggle its supply chain as it approaches product updates, seeking to accurately estimate consumer demand in order to deplete its existing inventories just as the new models are released. But if today’s report is true, it seems that Apple may have overestimated customer demand for the early part of 2013 and is now finding itself with substantial inventories heading into its next round of product updates.”
Whether or not the company is stuck holding onto excess inventory is yet to be seen. However, this rumor just goes to show you how delicate the supply chain truly is.
Do you believe Apple Inc. (NASDAQ:AAPL) is currently dealing with this issue?
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DISCLOSURE: I have no positions in any stock mentioned.
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