Wednesday Apple Rumors: Shortage Rumors Boost Shares

by Christopher Freeburn | September 5, 2012 2:35 pm

Wednesday Apple Rumors: Shortage Rumors Boost Shares

daily apple rumors  300x180 Wednesday Apple Rumors: Shortage Rumors Boost Shares[1]Here are your Apple rumors and AAPL news items for today:

Delays Boost Price: Rumors of component shortages for Apple‘s (NASDAQ:AAPL[2]) iPhone might potentially frustrate customers, but they also lead to increases in the company’s share price[3], AppleInsider notes. A study by an Evercore Partners’ analyst shows that Apple’s share price rises in quarters when the company announces supply problems for the iPhone. Apple shares also post improved performance when the company admits supply problems for the iPad. The Evercore analyst notes that in June 2010, after the company stated concerns over the supply of iPads and iPhones, Apple’s shares rose 26% over the following three months. The share prices rise reflects a recognition that Apple consumers are willing to wait for Apple products, even if delayed, rather than turning to a competitor, the analyst speculates.

Hefty Bonuses: Apple’s newest executives — Craig Federighi, Apple’s senior vice president of Mac Software Engineering, and Dan Riccio, Apple’s senior vice president of Hardware Engineering – both received 75,000 shares of company stock as part of their compensation packages last month[4], CNET notes. The shares finish vesting in four years and, at current market prices, are worth more than $50 million for each executive. The stock grants were revealed in company filings with the Securities and Exchange Commission. Such large stock awards help insure that executives will remain with the company and resist poaching efforts by other technology players. Last year, most of Apple’s senior vice presidents received grants of 150,000 shares each, worth $60 million, if Apple’s share price remains at current levels.

Early China Debut: While previous iPhone roll-outs have taken time to reach Asia, inside sources say that China Unicom (NYSE:CHU[5]) expects to offer the next generation iPhone by the end of the year[6], The Next Web notes. In past iPhone debuts, China didn’t receive the newest model iPhone for months. Last year, the iPhone 4S debuted in the U.S., Canada, Australia and Western Europe in October, but didn’t appear in China until January. China Unicom has offered the iPhone since 2009. China’s largest mobile carrier, China Mobile (NYSE:CHL[7]), has yet to conclude an agreement with Apple, though rumors say negotiations are on-going.

For more about the company, check out our previous Apple Rumors[8] stories.

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/apple-rumors-stock-news/
  2. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  3. but they also lead to increases in the company’s share price: http://www.appleinsider.com/articles/12/09/05/potential_iphone_5_supply_constraints_seen_as_positive_for_apple_stock.html
  4. part of their compensation packages last month: http://news.cnet.com/8301-13579_3-57506164-37/apples-latest-top-executives-get-$50m-stock-perks/?part=rss&tag=feed&subj=News-Apple
  5. CHU: http://studio-5.financialcontent.com/investplace/quote?Symbol=CHU
  6. offer the next generation iPhone by the end of the year: http://thenextweb.com/asia/2012/09/05/insiders-claim-china-unicom-will-sell-apples-iphone-5-end-2012/
  7. CHL: http://studio-5.financialcontent.com/investplace/quote?Symbol=CHL
  8. Apple Rumors: http://investorplace.com/2012/04/hot-topics/apple-rumors-stock-news/

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