The saying “what goes up,
must come down” must also apply to one of the most successful companies in the
world.
Apple, the Cupertino based
tech company has seen mostly a decline in their stock since September, falling
from $700 to just $595.
On the bright side Apple has
seen a huge 50% increase in the stock in the last 10 months, a lot higher than
the 11% reported by the S&P 500.
The stock price this past
January was $395 a huge difference from the current price of $595.
Though the 10 month
difference can be seen as a huge success, others may wonder if the recent
downturn may just be a glimpse into the future of Apple.
Major releases like the iPad
4,iPhone 5 and the introduction of the iPad mini had adverse effects on apple stock,
as it opened up around $634,yet closed right below $616.
Many suspect it could be the
price of the iPad mini in relation to competitors’ similar devices, which
offers yet another dose of reality to Apple.
CNBC reporter Henry Blodget
states that the gap between Apple and other companies’ technology advancements
have become strikingly similar. “Longer-term, increasing competition, maturing
markets, and pressure on Apple’s extraordinary profit margin may become bigger
concerns. Apple’s competitors have now arguably caught up with the iPhone, or
at least gotten close enough that the differences between brands are only important
to tech snoots.”
Aside from the obvious technological standpoint its also possible
that investors could be emotionally invested in Apple as a company, or at least
used to. Even though Apple’s new products are selling immensely, they aren’t
selling as immense as anyone had hoped.
A recently released mixed earning report which featured strong
iPhone sales and almost-decent iPad sales have also made investors edgy.
The loss of Steve Jobs’ leadership and craftsmanship allows many
to believe that many of the products released since his death just don’t have
his special touch.
There has also been a
recent shake-up within the high ranks of the company which came as a surprise
to all,Scott Forstall and John
Browett are leaving Apple. Browett
has only been with Apple for nine months. While Forstall was one of Steve Jobs’
favorite employees and has been with Apple since 1997,this is yet another wrench thrown into the technology
empire that is Apple.
Though these times may seem testing, for Apple the current price
of $525 is nowhere near the 5 year low of just $80 back in November of 2008.
Apple also looks to release an updated version of their highly successful
music managing program iTunes, which doesn’t comes without its own woes as it
has faced several delays.
