Some short sellers have moved out of Apple Inc. (NASDAQ: AAPL), perhaps afraid of the effects of the iPhone 7 launch. Short interest in Apple dropped 4.7 million shares to 47.1 million for the period that ended on August 31.
The iPhone 7 was released in September. There are rumors Apple may not have enough supply to accommodate early demand. People already have started to line up near Apple stores. The rush to buy appears to be similar to earlier versions of the product.
Critics of the iPhone 7 think it is not much of an advance from the iPhone 6 family. Even if this is true, the Apple brand has trumped the problem. Apple says it will not announce early sales results, which it has done with ever other iPhone. Some analysts believe Apple will ship over 70 million units through the holidays until the end of the year.
Then there is the matter of Apple’s share price, which has surged 11% since July 26. That is enough to drive some short sellers into hiding.
Philip Schiller, Apple’s Senior Vice President of Worldwide Marketing, said at the launch event:
iPhone 7 and iPhone 7 Plus dramatically improve every aspect of the iPhone experience, reaching a new level of innovation and precision to make this the best iPhone we have ever made. The completely redesigned cameras shoot incredible photos and videos day or night, the A10 Fusion chip is the most powerful chip on any smartphone while delivering the best battery life ever in an iPhone, and an entirely new stereo speaker system provides twice the sound, all within the first water and dust resistant iPhone.
Sales will prove if the statement is true and whether short sellers made the right decision.