More Trouble for Apple!


Shares of Apple are down below $500 again, continuing the stock's downhill slide. The fall may be linked to news out of Reuters today that Apple supplier Sharp has reduced its output of the large iPad screens. In this video, Motley Fool tech and telecom analyst Andrew Tonner tells us that this could mean one of two things. The first would be that sales of Apple devices are naturally slowing after the biggest quarter of the year, the holiday quarter, which to Andrew would be no problem for the company. Where he starts getting concerned is if he sees that demand is actually falling for the larger iPad overall, possibly due to cannibalization by its younger brother, the iPad Mini. He notes that this is something investors will particularly want to look for when the company reports earnings next Wednesday.

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Andrew Tonner owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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