Every product from the list was expected to take its stocks to at least $100 up, but Apple stock price has gone down despite iPad 4, iPad Mini and iPhone 5 release
Apple’s stock prices are sinking and sinking. With the rapid fall of the stocks that was expected to touch at least $800 immediately after the launch of iPhone 5 went downhill instead and sank further after the introduction of a small tablet along with the 4th generation version of its top selling tablet iPad.
Earlier the scenario used to be different. Immediately after the launch of iPhone 4S, the Apple’s stock value went up substantially and crossed $500 per share. This was followed by what now looks as a dream run. After the launch of iPad 3 that Cupertino based Apple called New iPad, its stocks touched another high of $600 and didn’t look back till mid September.
By early 2012 many analysts had started predicting that Apple’s stock will touch $1000 within the next one year. There were analysts who put even short term Apple stocks reaching a high of $91. Piper Jaffray analyst Gene Munster who has been one of the top predictor of Apple touching the sky said in April this year that “Shares can reach $1,000 based on our belief Apple will continue to win in global mobile devices”. Munster was not alone. There were many analysts who thought that the windfall will continue. Brian White of Topeka had also predicted Apple stocks breaching $1000 within the next 12 months.
But within less than two months’ time, Apple stocks have gone from $715 to $542 and there is still no guarantee that it will not slip beyond $500.
Though there is every chance that Apple’s stock will go up in both short and long term, there is also every chance that it may still go down to even less than $500. And for many investors who thought it safer than any investment this is going to destroy many their numerous dreams.
Many analysts have said that this is the toughest time for Apple as far as its stocks are concerned. Ben Reitzes of Barclays says, “We seem to be in the midst of one of the most controversial periods in Apple’s stock in the last 10 years with what appears to be a sudden wave of pessimism overtaking the largest and most owned stock in the world. There is no shortage of publicity that since September 21st, shares of Apple have fallen over 20% vs. a drop in the NASDAQ of 9% over the same time frame”.
Henry Blodget in a report on CNBC says that the reason for Apple’s falling stock may be because of the fact that Apple’s and its competitors’ products have become very close in quality. “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. Some of the biggest smartphone markets, meanwhile, including the US, have passed the halfway point in terms of penetration, which is the point at which growth usually starts to slow down” says Henry Blodget. Others too concur with him. But don’t panic. Fundamentals are still very strong in Apple’s case and the stock price are still expected to go up.