Apple Suffers Largest Stock Decline in 11 Months

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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  • Nakal
    Finally, some good news!
  • jhansonxi
    Somebody hacked Zak's account. :D
  • TheBigTroll
    irrelevant to me. i just want apple to stop wasting taxpayers' money across the world on lawsuits
  • blurr91
    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).
  • Neverdyne
    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.
  • A Bad Day
    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?
  • house70
    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.
  • A Bad Day
    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.
  • Warsaw
    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? 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.
  • wdmfiber
    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.