Price
Action:
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.
Latest
Developments:
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.
Rumor:
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.
Something has been bugging me for a while. The original estimate was 6-10 million by the end of the quarter. Then some "analysts" got carried away and predicted 6-10 million for the the first week. Then, it became 6-10 million for the first weekend.
ReplyDeleteNo matter how you look at it, selling 5 million devices in 72 hours is in no way disappointing. I also disagree with Mr. Jeffrey as an impending deal with China Mobile would offset any hampering from competition or economic turmoil.