Why Apple stock price is sinking despite iPhone 5, iPad 4, iPad mini doing well?
Many people are wondering as to why Apple stock price is sinking despite iPhone 5, iPad 4, iPad mini doing exceedingly well in the market
Though Apple’s stock price has dropped sharply in recent weeks, Apple products are doing more than fine in the market. Apple’s iPhone 5 launched two months ago has been doing exceptionally well in the market and has become the fastest selling smart-phone ever. Two other products launched a few weeks later are also breaking previous sales records. iPad 4 and iPad Mini both are giving other tablets a run for their money.
During the first weekend after their launch, Apple said the company sold as many as three million machines, taking the bar too high for their competitors. Though Apple didn’t really reveal as to how many units of the iPad 4 and iPad mini were sold, separately, nonetheless it was an achievement in itself.
So while Apple products are doing exceedingly well, it is very disappoint to see Apple stocks touching one low after the other. From $705 it has crashed to $527, a low that was unthinkable till a few weeks ago. But people are not giving up hopes as they say that Apple’s foundations remain strong and the fall is merely a temporary phase and it will correct itself within days. For the first time in at least several months, Apple stock has gone down $500 billion market capitalization.
Reports suggest bumper and better than expected sales for Apple in the months ahead. A CNET forecast says that the Cupertino based Apple is expected to ship 46 million iPhones and 23 million iPads in the holiday quarter. It is also expected to ship 43 million iPhones and 19 million iPads in the first three months of the next year. So things are quite bright for Apple and so the future.
Right now there are two sorts of opinion about Apple stocks future. One says that Apple’s stocks are set to go down further, while the other suggest that it is set to rebound. Jeffrey Gundlach of DoubleLine Capital who is betting against Apple says, “Investors had believed Apple would take over the world, management was flawless, its products were in infinite demand and competition couldn’t make a dent”.
But then there are analysts who are hardcore Apple fans and think that it is set to go up again and touch $1000. “I tell them it doesn’t look pretty today, but there’s [a] brighter future in the next month or two…The reality is the stock should be significantly higher, and I think $900 — it’s not going to be there tomorrow, but we should be on a pace to that based on these earnings”. Yesterday Apple stocks closed $527.68, up $2.8 from the previous close. Many Apple fans will say it is a good omen.
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