Apple’s latest and greatest smartphone, the iPhone 5 was an enormous success when it was first launched. The company reported sales of over five million iPhone 5s over the launch weekend. This gave us a clear idea that the smartphone was headed towards glory like its predecessors. However, a recent report stemming from the Wall Street Journal suggested that the demand for the device might have gone down as the company reportedly cut down on display orders for the iPhone 5. This was obviously big news at the time and people began thinking that this was the beginning of the slump. And now, we have new revelations being made on Apple’s current situation in the stock market and things don’t look good.
Apple (AAPL) has seen a colossal slump in share prices ever since the past few months, which has been serious cause for concern for the folks at Cupertino. Apple’s shares now have come to a halt at $486 which was at $705 back in September 2012, so we can clearly see that there is something about Apple that the investors aren’t seeing in good light. To begin with, there’s plenty of speculation about a new and cheaper iPhone being launched in mid-2013 for developing markets, which might have made the investors lose faith in their beloved company. Furthermore, the desperate attempt to make a mark on the budget tablet industry with the iPad Mini has also been criticized by a few analysts.
We’re not sure if Apple Maps is an issue anymore with Google Maps making its way to the AppStore, but it certainly seems like the investors aren’t as happy as they were a couple of years ago. Obviously, things aren’t going to be easy and with the amount of competition in the market, there’s hardly any room for second place. People have criticized Apple for not having innovation in its recent products, which is something that defined the company and set it apart from the rest of the competition. This is actually true and we have all experienced that. There hasn’t been anything groundbreaking since the launch of the iPhone 4. Not that the Retina Display iPad was a bad idea, but it didn’t bring anything new to the table. Perhaps 2013 will be the year for innovations for Apple and the investors would certainly hope so.
The industry is currently rife with speculation that Facebook will announce something game changing today, which could also be the reason why investors are letting go of their Apple shares. While everything is possible in the current scenario, we will have to wait and see how Apple will get out of this slump and rise again. Don’t get me wrong, the company is still doing fairly well in the market and has a good hold on the smartphone market with a decent share of iPhones out there. But one will have to say that the current stock prices are a little concerning for the company. Its notebooks and PCs are doing well though, which is an important segment for the company.
Via: The Verge