The new Apple Inc.(NASDAQ:AAPL) iPhone5 was met with
thunderous excitement and anticipation, with about five
million phones getting sold within three days of the release of the new
smartphone. And yet, Apple Inc suffered a drop in stocks, with the stocks
dropping to $680.30 from $700 in less than two trading session. This is an
indication of what unrealistic expectations are attached to the company. The
analysts had predicted that Apple would sell ten million copies within its
first few days, and apparently, people have been let down by the lack of the
fulfillment of such an expectation.
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The stocks fell to 1.3% on Monday but the nuances of
the expectations were not investigated. The exceptions, and the reason why
Apple could not sell ten million iPhone5s, have not been looked at carefully
enough. The stocks feel because of the theory of the analysts, but the grounds
on which this theory was based, was not evaluated. Even if Apple does not
manage to sell ten million copies, the five million which it sold were more
than what the other major companies sell in a few months’ time. Also, when
Apple announced the sale of five million phones, it did not take into account
the pre-orders, which have not yet reached the buyers.
The fact that Apple seems to run dry of the products
may be a carefully crafted strategy for marketing purposes. The iPhone5 was too
overtly anticipated for Apple to not be prepared for the demand. One also needs
to consider the fact that the phone is yet to be released in many countries.
Twenty-two other countries will get the new smartphone on the 28th
of September. And Apple wants the phone to be sold in a hundred countries by
the year-end.
The holiday seasons will also boost sales. The
iPhone5 seems to be very coveted even now, and the advertisements released
during the holidays are sure to make the phone more popular than it already is.
All in all, there is no reason for stocks to fall,
because even with a less than expected amount of sale, Apple manages to rule as
the most popular smartphone maker.
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