Is Apple’s $AAPL Sharp Fall Going to Change Momentum Soon?
As one of the most fruitful and popular stocks on the market, Apple has been experiencing some difficulties in the market, losing almost half of it’s market value in recent months. Apple’s stock reached its peak in mid September 2012 at $705.07 igniting excitement in the tech world. In mid January 2013, the stock plummeted to below $450.00 and is currently sitting at $447.10. Will investors ever see their stock climb all the way back up to $700 or $800?
This fall seems to present itself as a new-found opportunity for investors. It’s reported that the iPhone 5 sold the most units ever in one quarter, that’s 47.8 million units in quarter 4. Yet despite the success, sales have been dropping and Apple announced no rise in profits, concerning investors. Analysts predict that iPhone 5 sales for the first and second quarter will be between 35 and 40 million units sold.
Modern day people are drawn to phones that are more capable and “smarter” than themselves in a sense. The appeal of Apple products and their ability of syncing to other Apple devices is huge for consumers. Apple explains getting people to buy their products is not the goal, but for their customers to ‘love’ the products they buy. This kind of marketing technique hooks consumers, and keeps them coming back for more no matter what. This kind of cult following and popularity behind such a high quality device, will keep Apple afloat for a long time coming. Apple is also expanding iPhone international availability, adding new countries to it’s list, along with extending iPhone service to new carriers.
The hard hitting truth is that Apple is experiencing competition from Samsung, RIM, and Nokia and as a result, loyal Apple users may be allured by other models, bored with the ever revolving blatantly similar iPhone releases. It is estimated that Android took up 69% of the smart phone arena in the end of 2012, up 16% from the previous year. The Android operating system, Google Play, is growing more rapidly than Apple’s iOS as well. The iPhone is Apple’s market maker as is it controls over 50% of the entirety of their profits. This recent downfall may open up an opportunity for quick change in the near future. Stay tuned to see when this apple falls from the tree.
By: Eva Cantillo