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Apple Suffers Largest Stock Decline in 11 Months

By - Source: Guardian | B 62 comments

iPhone 5 demand said to be considerably declining.

Apple has suffered its largest stock decline for 11 months amid waning demand for the iPhone 5.

On January 14, shares of Apple decreased to below $500 for the first time since February. The stock did, however, end the day at $501.75. On January 15, though, it settled for a low of $485.92.

The Wall Street Journal recently said sources indicated that Apple reduced screen orders for the iPhone 5 by almost 50 percent due to weakened demand, as well as decreasing component orders.

Back in December, 2012, UBS analyst Steven Milunovich reduced his iPhone sales estimates for the March, June, and September 2013 quarters by 5 million units within each quarter, noting that the company is unlikely to enjoy the same success it experienced during 2012.

Following the iPad 4 and iPad Mini's launch, Apple lost $35 billion in market valuation in what turned out to be its largest share price decrease in four years. Its highest market valuation was over $700 billion, but that figure has been dropping ever since the launch of the iPhone 5.

 

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  • 41 Hide
    Nakal , January 15, 2013 9:54 PM
    Finally, some good news!
  • 36 Hide
    TheBigTroll , January 15, 2013 10:00 PM
    irrelevant to me. i just want apple to stop wasting taxpayers' money across the world on lawsuits
  • 32 Hide
    jhansonxi , January 15, 2013 10:00 PM
    Somebody hacked Zak's account. :D 
Other Comments
  • 41 Hide
    Nakal , January 15, 2013 9:54 PM
    Finally, some good news!
  • 32 Hide
    jhansonxi , January 15, 2013 10:00 PM
    Somebody hacked Zak's account. :D 
  • 36 Hide
    TheBigTroll , January 15, 2013 10:00 PM
    irrelevant to me. i just want apple to stop wasting taxpayers' money across the world on lawsuits
  • 22 Hide
    blurr91 , January 15, 2013 10:11 PM
    Now it's more than just a correction and investors taking money off the table. There is some real concern about Apple's strategy (marketing tiny incremental improvement as something "magical" with each product).
  • 31 Hide
    Neverdyne , January 15, 2013 10:14 PM
    Yesterday I was renewing my contract with my carrier, and the guy being attended next to me was telling the guy he didn't want the iPhone 5 because his iPhone 4 was enough, the customer service guy was telling him how the upgrade would be cheap ($250) for a vastly upgraded phone and blah blah, but the guy kept insisting he just wanted to stay with the iPhone 4 and renew contract without additional costs.

    I think it's getting to the point where many mainstream (note, not hardcore or tech-savy) users simply don't care about more performance until something revolutionary happens that needs it. They just want to make calls, browse the internet, check emails, some music, Angry Birds, and maybe a movie or two; and for that the iPhone 4 is enough already.
  • 18 Hide
    A Bad Day , January 15, 2013 10:20 PM
    I remember when one of my friends bought like 20 of Apple's stocks in a stock stimulation game for the state-mandated Personal Finance class...

    At around $700, the day before it started to decline.

    Today he asked me when will Apple's stocks climb back to $700 so he doesn't take a stupidly large loss.

    What should I tell him tomorrow?
  • 11 Hide
    house70 , January 15, 2013 10:25 PM
    Only means that more and more people wake up and smell the future. And it doesn't smell like apples.
    Now, with BB10 around the corner (a vastly superior device, compared with iPhone), the array of choices is even larger, for consumers' benefit.
  • 8 Hide
    A Bad Day , January 15, 2013 10:28 PM
    EDIT: I also forgot to mention that my friend was in a contest to see who can earn the most amount of money from the game. I'm fairly sure he's nowhere close to first place.

    Meanwhile, I've been shorting against Apple's stock since the start of the school year.
  • 14 Hide
    Warsaw , January 15, 2013 10:42 PM
    Well about time the people start to really look at the "value" of crapple.

    I'm not denying their involvement of the rise of tablet's, media players and smartphones. All in all though, they did not innovate at all, just took a design and made it better.

    ...Thinking back, what was Apple founded on? Hmm......an OS, that somehow was built off a simliar system Xerox had....

    Apple does and always will take a design, tweak it, market the hell out of it (they really do), and I will say brilliant marketing to the common person.
  • -8 Hide
    wdmfiber , January 15, 2013 10:49 PM
    I won't buy a phone any bigger than the iPhone 4 and even it's a bit much. Physically large phones are too much of an inconvenience and embarrassing to be seen with.
  • 11 Hide
    _Cubase_ , January 15, 2013 10:50 PM
    There is only so many times you can tout the "I has a new hat!" line before people cotton on to the fact that in reality: Apple just doesn't have that much more to offer us. I eagerly await Samsung to deal the final blow.
  • 0 Hide
    Anonymous , January 15, 2013 10:57 PM
    As for people not upgrading to the iPhone 5 I feel that it is more of a timing thing. I cant upgrade to the 5 until may of this year. So I would not upgrade until I can get the phone at a discounted point! I am not willing to pay $250 more than I have to if I wait. I am sure that there are a lot of people out there that due to the timing of the iPhone 4 Release date and the 5 date that a lot of people are not able to do the update yet unless they are willing to pay the full or almost full price. For that I am sure that people are just waiting till they can and that mean slower buying of Apple phones.
  • 18 Hide
    calmstateofmind , January 15, 2013 11:03 PM
    wdmfiberI won't buy a phone any bigger than the iPhone 4 and even it's a bit much. Physically large phones are too much of an inconvenience and embarrassing to be seen with.


    I don't know about embarrassing... inconvenient, possibly.
  • 5 Hide
    halcyon , January 15, 2013 11:06 PM
    Apple needs to do something significant. They need to make the next iPhone something that is as good or superior to an S3 with Android JellyBean with really competitive hardware...and, well, I don't see that happening...they like little screens. Tim Cook needs to find a way to lead his teams to innovate or watch this decline become the norm. ...and frankly, I just don't see it happening. Apple, yeah they had a good run...now grab some popcorn and let's sit back and watch their decline (me with a bit of sadness). Tim Cook is not the maniac that Steve Jobs was...good and bad.
  • 6 Hide
    Soda-88 , January 15, 2013 11:20 PM
    No way! What could have possibly gone wrong :ouch: 

    Just kidding :lol: 
  • 3 Hide
    palladin9479 , January 15, 2013 11:23 PM
    Quote:
    Tim Cook is not the maniac that Steve Jobs was...good and bad.


    Wouldn't of changed much had Steve still been at the helm. Stock price would of slipped slower as everyone would of bet on Steve doing "something". Though in the end we're seeing history repeat itself.

    Apple is brilliant and UI design and marketing. They make things look *good*, their not innovative or any other marketing buzzword, they haven't invented anything new. Apple simply took stuff other people made (and poorly marketed), put them together with a fresh coat of paint, made it easy for the user and put a whole lot of "cool / hip" advertising behind it. Their using the fashion industries model for products.

    This works well as long as they have the market cornered, once someone else comes along and is willing to provide a competitive product at a lower price point their market share immediately shrinks. Apple products, like designer brand hand bags, will remain "look at me" items. Their market share will shrink as the regular folks who only care about getting what they need at the lowest price opt for the cheaper alternatives. If Apple lowers it's price to compete then it'll tarnish it's "designer" status.
  • 4 Hide
    memadmax , January 15, 2013 11:33 PM
    My tracfone does everything that I want a cellphone to do and what cellphones should do: Make phone calls... at a fraction of the price....
  • -3 Hide
    halcyon , January 15, 2013 11:43 PM
    memadmaxMy tracfone does everything that I want a cellphone to do and what cellphones should do: Make phone calls... at a fraction of the price....

    You do realize it's not 1998 right?
  • 5 Hide
    ddpruitt , January 16, 2013 12:05 AM
    It just means the stock was overvalued to begin with. Happens to a lot of companies (much as I'd like not a knock against Apple), the stock price is just correcting itself.
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