Apple stock price is down substantially and predictions are gloomy. Meanwhile Samsung’s Galaxy S4 launch is affecting it badly. Its actual market launch will further affect it
Last week many people thought that Cupertino based Apple’s bad days on Wall Street were over. But that sense of comfort has been shattered once again by the continued slide of Apple stocks. Yesterday once again it went down substantially and lost more than $13 on the stock market. This is a huge setback for the company that has been on a losing streak ever since it introduced the iPad Mini and the iPad 4.
Both the products not just failed to excite the Apple fans across the US and elsewhere, the two also failed to find favors with the reviewers. Though Apple may not give a damn to what reviewers think but people’s dissatisfaction has played a major role in pulling down Apple stock market performance. The stocks that were being traded at more than $700 mid September last year are being traded at just above $400, a complete loss of around $300.
On the other hand Apple’s existing flagship handset iPhone 5 too didn’t do as good as it was being expected to do. To be true, the dissatisfaction with iPhone 5 caused the sudden fall of Apple stocks.
Meanwhile there are reports that suggest that the latest launch of Korean tech giant Samsung may affect the Wall Street performance of Apple. For many people Galaxy S4 and Apple stock market performance correlation may be confusing. But Haydn Shaughnessy while writing in Forbes says, “… the S4 is not even an adjacency play. It is an iPhone-like phone, just done a whole lot better than the iPhone itself. But critically it is also being done faster. That is the new nature of innovation, at least one important feature of it…Apple likes to bring out a truly updated device once every two years. In the interim it will do an update (the S version)…Samsung and other smartphone makers have disrupted that pattern by launching new phones, major upgrades anyway, in the S year, taking the shine of Apple’s reputation as an innovator and reducing the impact of Apple’s software advantage”. He seems to be pretty right.
Though Apple’s stock might not have fallen the day when Galaxy S4 was launched in the market, but it is doing badly in the days following the launch. This means market first waited to know as to what fans and analysts say and then showed their impression in the sudden fall of Apple stocks. Apple stock closed at $428.91 yesterday losing as much as $13.75 or 3.11% of its value. On September 15 it was at its highest level of $705 per share.