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Apple Investors Wise Up

By Evan Niu, CFA - Apr 11, 2013 at 6:30PM

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Investors brushed off a supply chain rumor about weak iPhone demand, a very different reaction than the last occurrence. Is this rumor actually more meaningful?

Apple (AAPL 0.17%) investors are starting to wise up, and are now taking supply chain rumors with two salt shakers. A recent Reuters report noted that Apple supplier Foxconn saw a 19% year-over-year decline in sales, which was allegedly tied to weak demand for the iPhone. Previous rumors of this nature, such as one reported by the Wall Street Journal in January, have knocked shares down in the past. Perhaps CEO Tim Cook's warning last quarter not to read too deeply into supply chain rumors is resonating with investors.

In the video below, Fool contributor Evan Niu, CFA, explains why this time might actually be a little different.

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