Is Apple (AAPL) Low On Parts For iPhone 2.0? Shares To Collapse?

By Douglas A. McIntyre Published Jun 7, 5:23PM EDT

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Apple (AAPL) may be short on materials for its new 3G iPhone which is set to be released next week. If the news is true, watch Apple’s shares drop from their current level of $185 to below $160.

According to Barron’s, "sources say that Apple has slashed its internal expectations for iPhone unit sales by up to 16%. They report that Apple had planned to ship 12 million 3G units by the end of the third quarter, but now expects to ship about 10 million to 10.5 million by the fourth quarter, owing to production delays."

For Apple stockholders, the news would be akin to a natural disaster. The new iPhone launch had been expected to drive company shares above $200. This had been based on the premise of a sharp increase in iPhone sales in the second half as customers push to get the new 3G product which runs on a much faster wireless network.

The Apple iPod’s sales growth is beginning to slow which is normal now that 150 million or more of them have been sold. Mac sales have picked up sharply, buy some analysts believe that increase has a natural limit because most corporations want to stay with PCs which run Windows.

If the iPhone has a problem a lot of the firms stockholders are going to head for the hills.

Douglas A. McIntyre

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.