In the wake of the unveiling of the iPhone 5, Apple Inc.(NASDAQ:AAPL) shares were at an all time high and that is why it was surprising to watch the company shares plummet to correction level, which is a drop of about 10% or more in a stock market index or a particular company's shares. The decline was around 12%, coming to $623.55 in yesterday’s intraday session from its life time high of $705.07, although they closed at $635.85.
After a solid gain in the past, AAPL has been showing selling pressure on concerns that hat the company may not be able to meet the user’s demand for its latest launched iPhone5.
There have been large number of complaints over the company’s latest shift of in house implementation of Maps and ditched Google Maps and has offered its own mapping application to users of the iPhone 5, who have not taken very kindly to the replacement.
Moreover, the company had reported solid weekend sale of newly launched, whichcame in at 5 million, however investors were disappointed with the numbers as analysts were targeting 6-10 million during the week.
As the latest reports reveal, Apple Inc.(NASDAQ:AAPL) has placed order of 10 million panels for its unannounced and unconfirmed iPad mini, an anticipated 1.8-inch tablet.
On Monday, The Wall Street journal reported from Taipei that some anonymous Apple suppliers have received huge orders for the tablet screen, nearly double what Amazon had placed for the Kindle Fire in the same quarter.
The report comes after a similar dispatch from Digitime, a Taiwanese tech site, which maintains a mixed track record when it comes to gathering precise information out of Apple’s Asian supply chain.
Latest Comments From Analysts
Sterne Agee analyst Shaw Wu stated that this trend is not uncommon after a huge run-up. Apple should focus in assembling the phones because the demand for iPhone 5 is steady and supplies for the device parts are getting better.
But, analyst Stuart Jeffrey at Nomura Securities is not too optimistic. He predicts that Apple’s growth rate in 2014 will drop from 50% to 10% because whoever can afford a smartphone will own one, and competition on price will hamper Apple’s revenue. Stuart Jeffrey gave a “Neutral” rating on the shares with a value of $710, which is way below than other predictions ($791).
According to analysts, the iPad Mini will be announced within a short time and Apple will unveil statistics for the fiscal 4th quarter that ended last month. The price drop did not affect the tag of “world’s most valuable company”. Apple is currently valued at $598 billion.