Taking profits on Apple and awaiting iPad mini

This month I trimmed my position in Apple (AAPL) after the release of the iPhone 5. It was a move to book some profits while I wait for the next earnings results and a potential iPad mini announcement right around the corner.

Apple sold 5 million iPhone 5 units on its opening weekend. This was less than the 6-10 million expected despite having double the pre-orders than the iPhone 4S did in its first day. The item was “sold out” during its first few days of sale, which could be an indicator of a supply issue or just Apple’s marketing at work. Issues with the phone such as the faulty maps app and purple flares in images dampened the company’s luster with some users.

An iPad mini announcement maybe just what the company needs to entice customers wanting a smaller form factor of its iPad line. It would help keep the competition at bay since 7” Android tablets have created their own niche. The iPad and iPhone make up the majority of Apple’s revenue.

So with a slow start to the new iPhone and a potential shakeup to the iPad line, I took some money off the table and exercised some discipline.

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