Apple drags on Nasdaq after report of reduced iPhone 8 orders

Shares of Apple (AAPL) and some of the company's suppliers are sliding after a report by a Taipei newspaper saying the tech giant reduced orders for its iPhone 8 models by over 50% for the remainder of the year due to lukewarm reception. Commenting on the news, Drexel Hamilton analyst Brian White told investors that he would be an "aggressive buyer" of Apple, noting that the iPhone maker has cut forecasts before even during the "best" cycles. IPHONE 8 WEAKER DEMAND: According to a report by Economic Daily News, Apple has cut orders for its latest, lower-end models by over 50%. The publication, however, did not identify any sources or elaborate on what sort of orders had been pulled, Bloomberg said in an article this morning. If the report is confirmed, the pullback could have severe impacts on suppliers like Foxconn (HNHPF) and Pegatron as well as smaller components makers. BUY ON WEAKNESS: Attributing Apple's weakness to the media reports around order cuts for the iPhone 8, Drexel Hamilton's White told investors he would be an "aggressive buyer" of the shares ahead of the iPhone X cycle kicking off next Friday with pre-orders. The analyst argued that the company is taking the iPhone franchise to a "whole new level" with its iPhone X, pushing the company into the "ultra-luxury" smartphone market. White believes Apple's stock will not only benefit from this cycle but also the company's capital distribution initiative, attractive valuation and potential new innovations. The analyst also noted that the staggered launch of the iPhone 8/8 Plus and iPhone X is causing more confusing data points relative to past cycles, pointing out that Apple has cut forecasts before "even during some of the best iPhone cycles." Additionally, he told investors that most of the people that he speaks to in the U.S. believe consumers are waiting on the iPhone X. White reiterates a Buy rating and $208 price target on Apple's shares. PRICE ACTION: In afternoon trading, shares of Apple have dropped over 2.5% to $155.69, providing a headwind to the broader market, in particular the Nasdaq.