BY | November 14, 2012

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.

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  • joe

    Apples poor performance is the result of people getting fed up with Apple suing everybody. Apples snarky commercials and better than everbody attitude. People love to tear you down once you’ve reached the top and Apple played right into this backlash by being arrogant asses. People are also tired of Apples creepy in your face army of Apple/Steve Jobs worshippers. Combined with the expected earnings tax hike next year I cant blame people for unloading their AAPL now. The risk is greater than any of the predicted gains by Apple schills like Gene Munster aka steve jobs lap dog.

  • dp serr

    Price of apple stock falling is the result of consumers disenchantment with apple products – they are restricted, inflexible, closed devices. Consumers have caught on that apple devices are becoming strictly purchasing portals for apple apps. Consumers are moving to greener pastures where devices can be expanded – expandable memory, load productive apps, USB connections, optical drives (mia in new Macs), reasonably priced, etc etc. Apple has to remake itself to please consumers and meet consumers wants and expectations. I don’t think apple is willing to change its arrogant business philosophy or able to change on time and surely this will be the cause of its demise – a self-inflicted festering wound….

  • ab

    Yes all true…arrogent, tax considerations etc made it zepplin down.

    But isn’t still a good long term bet? When should one buy it again? When it hits 500?
    When its the first of the year?

    Doesn’t the contrarian rule say buy when price is down and out of faver with good P/E.

    All you technical experts….what MA will it likely go down to before it starts trading sidways?

    I did well in 2008 by buying near the bottom when every thing seemed so bad. Any thoughts?

  • Jinn

    Apple gambled that it can tie in even more users by changing the proprietary connector On the iPhone and bet wrongly against stylus driven devices like the Samsung Galaxy Note 2. It also bet wrongly that there is no market for smartphones With screens larger than 3.5 inches.

    Hence the series of stupid and ridiculous and long term profit damaging patent suits against its biggest supplier of iPhone Chips and display screens.

    The price of crying wolf? A 20% immediate rise of iPhone chips costs by Samsung. Since no one else can fill Samsung shoes, this means immediate loss in future profit margins for each and every iPhone For the next 2 years.

    The completely against the Apple grain release of mini iPads Just illustrates how die and grim the outlook is.

    Is it any wonder Apple stocks are headed south? It would either be a very brave our foolish man to buy Apple stocks at this point in time.

    It is likely to be the worst quarter for Apple In many many years.

  • dp serr

    In my opinion, you are better off selling all your apple shares now. I foresee a new wave of technological advancement will unfold more explosive than retina or 3D display. Perhaps it will be my device that will work with brain waves to do simple tasks, write letters,play music,etc., issue commands wirelessly like cooking, making coffee, or just conversing what we call email today but the mind is used like telepathy….this is what people are waiting for not a 5 year old device with a new color and slightly thinner. If apple or any company can make this happen, the stock price will reach $5000 per share, easy. So, sir to answer your question, SELL while it still high…it will continue to fall and they will be no climbing back up, repackaging an old product will simply not work, I am afraid….

  • lesliemartha74@bell.net

    Yes all the previous comments about apple might well be truth or half truths however in the world of electronics I have found that all the apple products I have purchesed work and work well I haver never had to take any of my laptops desk tops in for repair and that also included,s my I pad ,s thats of great importance to me reliability I have opened apple products for at least 5 years and so far so good

  • Hein

    Your article is very detailed on reasons why apple stock prices have fallen. With the Nexus 10 announcement, once of apple’s biggest features the “retina display” became just another spec, and some of the newer mobile phone releases are sporting a 1080p resolution. So in just about every aspect other producers have caught upto apple and in a few cases surpassed it. The usual trend used to be, that apple released something and the other followed through a few months later.

    It has now changed, and others are innovating first and apple is in the others following along a few months later.

    However, I believe there is one factor you have missed. Apple through its litigation has created a lot of bad will.

    Whether or not apple was justified in its lawsuits is irrelevant, in the court of public opinion apple is viewed as “bad” company impeding progress. One simply has to view a few comment boards to garner this perception of apple.

    So going forth, a lot of people have mobiles, tablets etc. So with newer products the only hope that any company has is of converting people using the competitors products to their products. With the bad will apple has created people are turning to android based products more and more and those that do choose apple products especially in light of how fast they are releasing them are considered “iDiots” or “iSheep”

    Apple has to fix its image first.