“Apple was worth more than $1 trillion at the start of November,” Matt Phillips writes for The New York Times. “Now, it’s valued at $880 billion.”
“The mighty tech titans and their seemingly endless pipeline of profits, which powered one of the longest bull markets in stocks, are looking a little less invincible,” Phillips writes. “Shares of Apple and Google’s parent company, Alphabet, are down more than 10 percent since the market peaked, while Facebook and Amazon have dropped more than 20 percent.”
“Investors’ faith has been eroded by slowing growth and a trade war with China, as well as a steady stream of revelations about privacy lapses, security issues and mismanagement,” Phillips writes. “When the stock market hit its peak in September, technology had led the way, accounting for 50 percent of the gains for the year… Not anymore. Through Friday, roughly a quarter of the market’s decline since September was because of Amazon, Apple, Facebook and Alphabet, according to data collected by S&P Capital IQ. The sharp sell-off on Monday will only add to that tally.”
“The specter of regulation is looming over the shares of Facebook, as it deals with the fallout and costs from a data breach, privacy lapses and management missteps,” Phillips writes. “Alphabet likewise faces a regulatory crack down on business practices in Europe, and concern from elected officials in the United States about political bias… Soft demand for Apple’s new phones has hurt its shares and those of its suppliers.”
MacDailyNews Take: There is no proof that demand is soft for Apple’s new iPhones. Just some specious conjecture. The New York Times errs in reporting “Soft demand for Apple’s new phones” as fact.
“Since Apple’s share price peaked at just over $232 on Oct. 3, the stock has plummeted by nearly 20 percent, lopping more than $200 billion off the company’s market value,” Phillips writes. “Its shares were down nearly 4 percent Monday.”
Read more in the full article here.
MacDailyNews Take: Those were some expensive unit sales figures.
SEE ALSO:
Apple is having its worst month since the financial crisis, but the long-term trend appears intact – November 20, 2018
Apple analysts have a long history of misreading weak iPhone demand based on supplier rumors – November 19, 2018
Poor news curation at Bloomberg, CNBC, Reuters created misleading iPhone supply chain panic – November 19, 2018
WSJ: Apple slashes production orders for all three new iPhone models – November 19, 2018
Misreading Apple’s supply chain and iPhone XR demand – November 15, 2018
Apple: Ignore the noise – November 14, 2018
Dialog Semi says not seeing hit to demand from Apple – November 14, 2018
Don’t panic about iPhone sales just yet – November 14, 2018
Apple stock: This is not a repeat of 2015-16 – November 14, 2018
iPhone XR production cuts not due to soft demand – analyst – November 10, 2018
Apple’s Asian suppliers fall on report of canceled iPhone XR production boost – November 6, 2018
Nikkei claims iPhone XR production cuts, Apple stock drops over 3% – November 5, 2018
Uh, yeah, about those iPhone X ‘concerns’ from analysts: Never mind – May 1, 2018
Apple beats Street with best Q2 ever – May 1, 2018
Apple’s iPhone X isn’t selling well – or is it? – April 21, 2018
Apple’s iPhone X to be discontinued this year, analyst claims – April 20, 2018
Morgan Stanley: Apple stock may fall on ‘materially’ weaker iPhone sales – April 20, 2018
Apple’s iPhone X made 5 times the profit of 600 Android OEMs combined – April 18, 2018
Apple’s iPhone captured 86% of global handset profits in Q417; iPhone X alone took 35% of global handset profits – April 17, 2018
Bernstein: Ams AG is biggest winner in Apple’s TrueDepth Camera system – April 10, 2018
Apple’s iPhone X is the UK’s most popular smartphone – April 9, 2018
Apple’s iPhone X sales continue to disappoint, some analysts say – March 22, 2018
Ignore the iPhone X naysayers – March 10, 2018
Will the naysayers admit they were wrong about Apple’s iPhone X? – February 5, 2018
Do iPhone X sales spell trouble for Apple? – January 30, 2018
Apple supplier says report of iPhone X production cuts was overstated – January 30, 2018
Another January, another misleading iPhone supply cuts story from Nikkei – January 29, 2018
Apple stock drops after Nikkei report of iPhone X production cut – January 29, 2018
Reports of Apple cutting iPhone X orders make no sense – January 2, 2018
Apple stock tumbles on one poorly-sourced report of low iPhone X demand – December 26, 2017
Apple and suppliers shares drop on report of weak iPhone X demand – December 26, 2017
Nikkei: Apple to decrease iPhone production 10% in first quarter of 2017 – December 30, 2016
Nikkei proclaims ‘iPhone 7’ Dead On Arrival; bemoans Apple’s ‘lack of innovation’ – May 12, 2016
Japan’s Nikkei, The Wall Street Journal blow it, get iPhone demand story all wrong – January 16, 2013
Did Apple reduce 4-inch Retina display orders due to improving yields? – January 15, 2013
Analysts: iPhone 5 demand ‘robust;’ ignore the non-news noise – January 15, 2013
Apple iPhone suppliers decline on report orders cut by 50% – January 15, 2013
Apple swoon erases $17 billion from stock market – January 14, 2013
Apple iPhone 5 production cut signaling a new product release? – January 14, 2013
Apple drops to 11-month low on old reports of component cuts – January 14, 2013
The strange math of Apple’s alleged massive iPhone 5 component cuts – January 14, 2013
UBS analysts: Apple iPhone component order reduction ‘old news’ – January 14, 2013
Apple pulls down U.S. futures – January 14, 2013
Apple shares drop below $500 after reported cuts in iPhone 5 parts orders – January 14, 2013
Wow.. nice bit of stock manipulation. This is worst than many times before, but those of us long term Apple Investors are used to this…
I could be wrong, but it seems a statement of some kind from Apple could mitigate some of these serious slides in stock value.
Apple should say nothing while buying back its stock. Apple should stay quiet until it’s next earnings report. Let the scaredy-cat investors run around in circles looking for a magic stock that will give them gains.
Wow, make that $840 billion now (as of market close today).
There’s plenty of proof that Apple didn’t expand their markets by enough to make up the 2% lack of sales that would have made the quarter a huge success. There’s also plenty of proof that there are no new killer products, and updates.
There’s also plenty of proof that customers are complaining about the existing products such as needing dongles for every connection including Iphones into Macbooks,
or No Mac Pro and Ipad Pro’s that still lack basic functionality that a Surface has.
There’s also this, Worst optics ever.
https://www.businessinsider.com/apples-jony-ive-designs-diamond-ring-2018-11?r=UK&IR=T
vs new killer products for the deplorables.
I’m pissed because the miss in sales wasn’t by much, and Apples “we wait for customers to come to us” attitude needs to see someone’s ass get fired. Especially when they have ONLY 10% of any market.
With the product and price point mix of the current product line, there is no way Apple will expand their markets; it will rather contract.
While the US domestic market to a certain extent is OK, currency issues and median income issues elsewhere make them particularly exposed with the very high price point of all products.
I still have’t upgraded my iPhone X even though entitled to. I wonder how many others have done the same?
Hmmm, I notice the usual adblocking techniques no longer work here at MDN with their greedy and slavish ad proliferation contributing to an undesirable and blemished site experience. Funny how MDN is quick to criticize others for this type of FAIL but fails to look into his own site mirror. Might have to leave (no applause please) for a while until a new solution comes into place making this site tolerable again. So long for now.
https://appleinsider.com/articles/18/11/19/poor-news-curation-at-bloomberg-cnbc-reuters-creating-misleading-iphone-supply-chain-panic
Apple is now barely worth more than Microsoft. Even after the market has collapsed, Microsoft has a hefty P/E of 41 to Apple’s (steel mill going out of business) P/E of 14. How do you like those Apples? It only shows how poorly valued Apple is to its peers. Microsoft’s cloud business is considered much stronger than Apple’s iPhone business and that hurts. I still don’t understand why Apple decided not to acquire a cloud business which Wall Street believes is an unlimited growth market. Apple would have had much more strength to support it through these times.
Anyway, I’m not concerned as long as Apple is buying back stock and Warren Buffett is buying more Apple stock. I’m still getting my dividends, so I’ve nothing to fret about. I do believe Apple’s share price will rise close to former levels by the next earnings report. All this news media doom and gloom mean next to nothing.
I actually didn’t think Apple would be able to hold that $1T market cap for very long because I figured one poor quarter would take it away. I was right in thinking that way, only the recent quarter didn’t seem all that terrible enough to erase $220B from Apple’s value. Oh, well… I’m the fool.
Why didnt Apple acquire a cloud company? Because their CEO and management team are a bunch of blank eyed, slack jowled drooling morons.
Mr Tinkle = apple hating nimcumpoop
to this sell off I what I can say is that I just bought another (approx) $ 10,000 worth of aapl.
If it drops more tomorrow I might buy more.
( I’ve keep over 100 k in cash savings account for several years for something like this. I KNEW this was gonna to happen. )
I’ll NOT buy if there is CONCRETE info like a guidance change downwards from Apple etc. Investment is an inherently risky game but even I who have been criticizing Apple management a lot over hardware like Mac Pros think the sell off is overblown.
I hung in there when I my aapl went down 50% or so in 2007-8 . The stock then if you adjust for split is equal to about $20 today.
What I’m saying during that 2007 crash people were saying $20 was too rich and you should sell.
On paper (since I’ve not sold any shares recently) I’ve lost hundreds of thousands. So lets see whether I guess right one more time !
All of us long time holders still have made lots of moolah even with the drop off.
NOTE: like I said before if the price keeps dropping and people keep selling and Apple keeps buying them up and ‘retiring’ the shares , they have $100 b in savings and tens of billions earnings every month to do this , then in a FANTASY if you were the LAST Shareholder standing, you will own a company that generates 40-100 + billion every three months!
At this price 177 or so , it will take current Apple earnings with zero growth (and not dipping into savings) to buy back all the shares in 15 years or so.
“Freeeeeeee…. Free fallin'”…
Lots of investors taking profits for the year (causing others to grab as well) from one of the best performing stocks of the year. Also, people are expecting pushback on the tax cut, rising interest rates, Trump’s trade war and other Piper-paying ahead as the post-recession recovery slows. Apple had a great run, but it wouldn’t surprise me to see it back to the $150’s or lower. Also, not much news or any new products coming out to spark an Apple recovery in the next few months.
Apple is in free fall and for good reason.
Pipeline has turned this company into a one product company.
Pipeline has burned so many customers, no one trusts him.
Pipeline doesn’t do basic upgrades forcing loyal customers to head off to Windows.
Pipeline raised prices to try and hide falling sales, the investors noticed and the stock has been dropping like a rock since.
Pipeline has nothing new on the horizon, not even updates to get the Mac line up even footing with windoze machines. For $500 you can get a budget windoze machine with an i7 processor, for $1000 you can get a mac computer with an i3.
It’s not a surprise the stock has dropped off a cliff.
Yes, Pipeline has turned the company into a one-trick pony. Customers are losing faith in his leadership and so is Wall St, incapable of basic upgrades that Windows excels at (that one hurts), and as you pointed out Apple computers are twice the price at half speed. When more regular customers figure this out no longer shackled to the illusion of fashion or status, realize bang for the buck, it could get much worse.
Interesting theory I have not read before: “Pipeline raised prices to try and hide falling sales, the investors noticed and the stock has been dropping like a rock since.”
Quite possibly Cook read the numbers in advance and tried to get out in front by raising prices to hide the decline. Looks like it may have backfired and could get worse in the coming year, we shall see.
Amazon is offering large discounts on Apple products to sell in volume that could lead to higher profits. Unless the smartphone market is saturated, the same profit principle should apply.
For the iPhone company this last refresh cycle spawned a few missteps. Offering TWO high end overpriced phones and and a bogus low cost XR is confusing to say the least. Add to the mix no small form factor iPhone SE that fits in smaller hands and pockets and competes in developing countries like India and China.
If Apple were to get off its premium high horse and develop a small form factor, less expensive Apple branded phone (plastic 5Cish) to compete with runaway Android market share, imagine the sales all over the world…
Jesus. Do you have to have ads with pictures of Trmp? Please no Trmp ads!!