Apple shares declined a little this week on rumours that the company had scaled-back iPhone or iPod production.
The rumour claimed that Goldman Sachs traders had been overheard stating that Apple had halved its iPhone production from 9 million to 4.5 million units. The rumour reduced the value of Apple stock by 7 per cent ($10) in a few hours.
The side-effect of the rumour was, of course, to create a decent buying opportunity for those investors who see any Apple stock decline as a chance to take a position in the company.
But the rumour was incorrect. DigiTimes reports that Taiwanese component manufacturers have seen no reduction in their orders from Apple, suggesting iPhone production remains steady.
Even if the rumour were true, Citigroup analyst Richard Gardner sees no reason to lose confidence in Apple stock.
The analyst points out that iPod production cuts at this point would be a strategic attempt to reduce inventory of the current models, as Apple may be preparing to introduce new versions of its popular media players.
He also expects a new iMac will be introduced during Apple's special event on 7 August next week.
Apple stock is currently trading up $2.35 at $137.35 per share on the pre-market.