Apple Shares Take a Nosedive, Worst Slide Since 2008

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News Posted: Thu, Dec 6 2012 9:23 AM
Finicky investors weren't as high on Apple yesterday as they have been in the past. Apple's share price dropped 6.4 percent on Wednesday, representing the company's biggest single-day drop in four years and shaving $35 billion from its market cap. What gives?

That's a good question, and there are no concrete answer to be found, only theories. One of them comes from Mercury News, which believes it has to do with dividends. In order to avoid possible tax hikes on cash as a result of the so-called "fiscal cliff" that's around the bend, companies have already started dishing out dividends for next year. Apple hasn't, however, so the theory goes that investors are taking their profits today to avoid a larger tax bill tomorrow.

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Another theory has to do with an overseas rumor suggesting the Cupertino company is slowing production heading into the first quarter of 2013, a move that could ultimately hurt Apple's earnings.

Yet another one has do with Apple's slowed growth. There's a consensus that recent product refreshes haven't been as innovative as in prior years. After transforming the mobile market with its iPhone, iPod, and iPad products, Apple has created a tough act for itself to follow.

Apple's slide in the stock market isn't new. After hitting an all-time high back in September, Apple's share price has since fallen to a five-month low and then a six-month low.
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CDeeter replied on Thu, Dec 6 2012 10:31 AM

Could be that at the ridiculous price a share is going for, some have decided to cash in before reality takes hold.

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eunoia replied on Thu, Dec 6 2012 11:14 AM

.

...pending.

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rapid1 replied on Thu, Dec 6 2012 11:21 AM

I am with ya on that one most definitely. Some may have realized that Android owns 68% of the real market as well, not whatever market penetration number APPLE is giving out as a market percentage.

I have never understood these crazy numbers you hear on APPLE market percentage. In reality there computers are still relatively low compared to the whole percentage of computers in the world as are there iPhone's. Yes they have a market percentage but I am pretty sure it is still under 20% I think I heard 16% yesterday of the whole smart phone market worldwide. There are billions of people in the world market and that percentage is a lot of people, it is still 16% Vs. 68% which is 4% (16 is 4% of 68) which is still almost 20% short of the whole market. Needless to say while I see them as valuable I also think there value is grossly over emphasized at best.

Of course for some reason APPLE runs on trends and trendiness which as far as the market goes I have never understood. Basing an invested amount of worth on a trend seems in the end to be a miscalculation in priorities to me. We have actively seen this once with APPLE when they refused to release some of there control of the desktops and remained a authorized interior HW and SW or proprietary company. Sooner or later the end users got tired of it because there was so much more available in and to that market product as well as area. Then they were pretty much abandoned on there mountain and APPLE almost went out of business completely.

Now they not only have the hardware in multiple fronts they also have one of the largest closed garden software markets ever. What do you think will happen when all that falls even if it is only in percentage. SO they loose 10% of 16% of the market for 5 years and hold 8% in total then the market will drop them at the curb. So getting while the getting is good might be a very smart thing to do!

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There's a consensus that recent product refreshes haven't been as innovative as in prior years. After transforming the mobile market with its iPhone, iPod, and iPad products, Apple has created a tough act for itself to follow.

This is how I feel about Apple right now.  They've literally just stuck with the exact same product and patched it as they went.  It's getting old now.

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Gee, I sure do wonder whether this has to do with the amount of failures apple has had lately. They are suing (Sueing???) Whatever. They will sue anybody that makes anything with any shred of relation to anything that they have...

It really does make me wonder what will come of them in the future.

Everybody's gotta get a new iPhone 5 for christmas!

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rapid1 replied on Thu, Dec 6 2012 10:35 PM

"Apple's position in the Chinese smartphone market was bumped from No. 4 to No. 6 in the third quarter as China-based brands fire up the competition."

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OSunday replied on Thu, Dec 6 2012 11:22 PM

Also realize from the other article that Apple is pulling out of China for some manufacturing purposes, so that announcement may decrease its presence there. Another thing I heard is that very few people in China, especially the factory workers who actually make and assemble Apple products actually own Apple products for a multitude of reasons but the primary one being price. Apparently no one can afford extra hundreds of dollars for brushed aluminum over there.

 

Oh the love hate relationship that I have with Apple...


Also considering Apples potential and history of success.. I'm wondering whether this is a start to the decline of that, or if it's a major opportunity to make a great investment and jump on some Apple stocks while the prices are low 

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Jump ship its never been a strong competitor when its the majority item in market apple thrives due to being able to charge whatever they want. But due to us be in worldwide recession people dont throw away money so easy anymore. Add the fact since change of leadership product quality has gone down drastically. Then add the fact they are using a business model for a different economic time. Produce produce is the mode they are in without adding any or marginal upgrades for their products.

Me personally I am practical if I need a car that goes a 160mph I wouldnt buy a million dollar ferrari I would buy 30-60k lotus. I normally buy cars at 20k ish miles due to being drastically cheaper and I dont have to deal with extra maintenance. But practical mindsets dont fit well with apple they look cool and sometimes are innovative. But price vs competitors is high when I can get same thing with 95% of the features for 1/3 the price.

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Dorkstar replied on Fri, Dec 7 2012 10:29 AM

hampton1:

Jump ship its never been a strong competitor when its the majority item in market apple thrives due to being able to charge whatever they want. But due to us be in worldwide recession people dont throw away money so easy anymore. Add the fact since change of leadership product quality has gone down drastically. Then add the fact they are using a business model for a different economic time. Produce produce is the mode they are in without adding any or marginal upgrades for their products.

Me personally I am practical if I need a car that goes a 160mph I wouldnt buy a million dollar ferrari I would buy 30-60k lotus. I normally buy cars at 20k ish miles due to being drastically cheaper and I dont have to deal with extra maintenance. But practical mindsets dont fit well with apple they look cool and sometimes are innovative. But price vs competitors is high when I can get same thing with 95% of the features for 1/3 the price.

Well said.  

@OSunday,

  I wouldn't say this is a time to invest.  Apple is pretty much hit their peak, unless they release a new product in a completely separate market, that has as much success as their phones and tablets have.  I imagine we'll see them up and down over the next few years, until they eventually fall out of the spotlight, and they'll sit dormant again until another innovator comes along and shakes things up.

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digitaldd replied on Tue, Dec 11 2012 11:57 AM

Apple stock is trading @ $545 which is right in the middle of its 52 week range of $377.68 - $705.07 which means its still in good shape just on a bit of a downswing now. Its also up 30% from the same time last year.

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Dorkstar replied on Tue, Dec 11 2012 6:53 PM

digitaldd:

Apple stock is trading$545 which is right in the middle of its 52 week range of $377.68 - $705.07 which means its still in good shape just on a bit of a downswing now. Its also up 30% from the same time last year.

 

Not to mention it's coming off the tail end of numerous huge releases.

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