Apple Suffers Largest Stock Decline in 11 Months
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.
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.
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?
Now, with BB10 around the corner (a vastly superior device, compared with iPhone), the array of choices is even larger, for consumers' benefit.
Meanwhile, I've been shorting against Apple's stock since the start of the school year.
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.
I don't know about embarrassing... inconvenient, possibly.
Just kidding
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.
You do realize it's not 1998 right?
And Windows was based off what?
And the Zune was based off what?
The Surface RT was based off what?
Microsoft physical stores are based off what?
Just in case you don't know, its:
Mac operating system
iPod
iPad
Apple Store
By the way Apple paid money to see Xerox's GUI OS. Xerox has zero capability to bring it to the masses, they only really did R&D and enterprise technologies not consumer level products. It was Apple that brought GUI OS to the consumers, they opened up that market.
It was Apple with the iPhone and iPad that opened up a viable market for touch based products. Now every Tom, Dick, and Harry manufacturer are making these products.