Also their shares dropped 6.5% after the fourth quarter closed. Iphones makes the most money for Apple more than a third to nearly half of their revenue comes form Iphone. Their revenue jumped 39% from last quarter but compared to last year it slowdown.
To me technology doesn't last,there are always new competitors or new technology to subsidize the old product. Even though there's a lot of hip about the new iphone their shared dropped during the last quarter. Im excited to see how well the new Iphone4S is doing considering that there are rumors that Iphone 5 might be coming out and some people are willing to wait for the iphone 5.
The news I read the day after iphone 4s came out, says the stock price of apple dropped down a a lot on that day. Apple now is absolutely a sign of popularity, all around the world. Numerous people are waiting for the new generation of iphone as they thought it would come out on that day. When they found out it was not what they expected, it was reasonable to see that happened.
ReplyDeleteThe death of Steve Jobs is also a challenge to Apple too. Lost the very symbolic and widely-known man, this corporation will have to prove, when the new product come out, that they won't lose the ability to produce better product only because they have lost the great person. I think if they do going to lost confidence and symbolic spirit from the consumers, it is possible to see Apple being replaced by other brand.
In my opinion the iPhone seems to have temporarily reached its peak. I have several friends that have an iPhone and there does not seem to be much difference between the versions. The only difference I am noticing is the 4G network that is becoming available for various networks which holds no significance to the type of phone. I think the iPhone needs to introduce new styles or find new ways to make it differ from their previous versions.
ReplyDeleteThis is just a case of wall street expectations.
ReplyDeleteOn wall street whenever a stock does not perform as per its expectations the stock price falls. Although Apple is doing really well people expect it to grow like crazy indefinitely.
I think this article is a bit biased just because steve jobs died. Apple's stock rose a lot the past few days, and the iPhone 4S is selling exceptionally well, despite the fact it is not very different form its predecessor.
ReplyDeleteSteve Job's philosophy involved a lot of design. That can be seen in how he compromised features like LTE for Design in the original iPhone. Jonathan Ive was the designer for all Apple products, he is still alive, and the rest of the Apple Team is still working together in harmony. Even though apple lost its visionary, it still has a team operating under the same vision, and that is what bodes well for Apple.
There is no doubt that Steve Jobs brought a lot of credit to Apple. He resurrected the company when it was heading for bankruptcy. Now the company is where they were before they brought Jobs back. Who is going to lead Apple? So, these figures to me are not surprising at all. There is uncertainty with in the company. Where do they go from here? No one knows the answer to that question. It will be a matter of time before we find out.
ReplyDeleteI do not think that one bad quarter automatically means that Apple is doing poorly. As the article pointed out, sales may have gone down near the end because of anticipation for the new iPhone (nobody would want to buy one when they could buy the iPhone 4S if they waited just a little longer). While people seem to believe the death of Steve Jobs will hurt Apple sales, I do not believe this is the case. I believe that although they had one bad quarter, they will continue to go strong.
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