We all know Apple (AAPL) as the giant that has brought us sleek looking and innovative performing technology. However, Apple's famed iPhone has come to a stand still on sales and has been cutting orders from its manufacturers. Since over forecasting, Apple has seen a major decline in equity; record breaking 11-month low.
This article looks back at Apple's most recent actions and how it could have effected the equity drop-off. One of many thoughts is Apple's shortening product cycle. As well as observing the harsh competition between Google (GOOG) and the slow come-back of Research In Motion, Inc (RIM).
It makes you wonder why the demand for iphones has dropped and if its going to bounce back. Like you said with the competition from android phones increasing are some of the apple faithful starting to convert to droid or did the iphone 5 just not live up to the hype. Either way apple is still making tons of revenue though.
ReplyDeleteThere are so many new phones and other technological devices that have come out in the last year in the tablet and the smart phone fields that it might be that the market is simply flooded. Also, wasn't it only six months or so between the release of the iPhone 4S and the iPhone 5. It might have just been too soon of a launch without an exceptional improvement. Perhaps consumers are satisfied and Apple needs to start looking into expanding and meeting another consumer technology demand rather an continuing to rapidly focus on the smartphone industry.
DeleteI feel this is misleading in some ways. iPhone sales are ahead in the U.S.17.5% to 53% year over year as Android has fallen from 51% to 41%, a 10 % drop. There are no iPhone cutbacks. That was totally made up and started with an inaccurate report from Nikkei.
ReplyDeleteWhy The WSJ Got The 'iPhone Demand Is Crashing' Story All Wrong
http://www.forbes.com/sites/markrogowsky/2013/01/15/did-the-wsj-get-punkd-on-apple-or-is-it-rotten-to-the-core/
Quite a few analysts say that the demand has not dropped:
http://www.telegraph.co.uk/tec...
http://blogs.hbr.org/pallotta/...
http://news.cnet.com/8301-1357...
I think the original intention of the phrase "iPhone cutbacks," was aimed at the new iPhone 5's sales, not an overall cutback on iPhone production.
DeleteAccording to Verizon (VZ), they sold 6.2 million iPhones. In any sense that is spectacular as far as iPhone sales go, however, only about half of that 6.2 million were iPhone 5 sales. This then resulted in some analysts to lower their price target on Apple (AAPL). Hence my comment on the article.
http://money.cnn.com/2013/01/22/technology/mobile/verizon-iphone-5/index.html