Apple suffered another major blow on the trading floor after its stocks plummeted anew, but this time the i-Phone and i-Pad maker lost four percent and closed down 6.4 percent to $538.79 on Thursday’s result on the stock exchange market.
After reaching its highest point ever since Apple started offering stocks, the Silicon Valley-based company saw its stock value declining fast and it now cost a fifth of its market value since its mid-September peak.
There have been lots of uncertainty over the last few months about Apple’s capability to stay profitable on the trading floor despite the emergence of Android-powered phones like that of Samsung and other tech companies.
However, the lessening profit margins also made investors a little bit concerned about the current performance of the company on the mobile market, especially with the introduction of new products such as the i-Pad Mini and the fourth-generation iPad.
Nevertheless, many analysts called it just a ‘temporary hiccups’ and believe Apple will recapture its old place on the trading game sooner than later.
Gene Munster, a senior market analyst in Piper Jaffray, believes the decline in stocks might be triggered by an article posted on Digitimes, which reported a nosedive in demand from Apple since the launching of their new products. Munster insisted it’s inaccurate to judge Apple’s market performance on the stock market since the decline in demand is expected after the launch of a new product.
Moreover, the recent pact between Nokia and China Mobile has some investors thinking about how Apple would fare in the largest mobile market in the world. China Mobile is expected to start selling the Lumia 920T, which is way cheaper than iPhone 5.
China Unicom is Apple’s carrier in China so far but China Mobile could begin offering iPhones and iPad probably early next year.