Why has Apple’s share price dropped?

“Investors in Apple got a late Christmas present when the company’s shares soared well past the $80 mark in January. But since then, Apple’s shares have dropped 23 percent from their January high of nearly $86 during the week of the company’s annual Macworld event. That’s when Apple unveiled its first Macs to contain Intel chips, several months ahead of schedule,” Amanda Cantrell writes for CNNMoney. “Also that week, Jobs pre-announced better-than-expected revenue for the December quarter and revealed that Apple had sold 14 million iPods, several million more than Wall Street analysts had expected and a three-fold increase over the previous year.”

“So why have the shares dropped? Analysts and investors say part of it is simply profit taking, with some investors using the January highs as a chance to cash in. The January announcements helped the stock hit a record high,” Amanda Cantrell writes for CNNMoney. “But they also blame the share price decline on the fact that Apple is in the midst of a ‘transitional quarter,’ selling its first Intel-based Macs and in the process of shifting its entire Mac line to include Intel chips… Another factor that may have contributed to the decline in share price is the fact that March is traditionally a seasonally slower quarter for iPod and Mac sales. The shares experienced a further sell-off Wednesday when analyst Gene Munster of Piper Jaffray released a research note estimating that Apple will sell roughly nine million iPods in the current quarter, shy of many Wall Street analysts’ expectations of 9.5 million… While analysts and investors say they aren’t concerned about Apple’s long-term prospects, the near term is unclear.”

Full article here.

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Related articles:
Piper Jaffray: Apple on track to meet or slightly exceed iPod unit expectations – March 13, 2006
Bear Stearns: Current Apple weakness is a buying opportunity – March 13, 2006
Citgroup analyst expects ‘fairly eventful’ Apple announcement around 30th anniversary on April 1st – March 13, 2006
Citigroup ups Apple to ‘buy,’ expects Intel transisiton to be complete in all Macs by August – March 13, 2006

20 Comments

  1. Yeh-heh-hehesssss . . . I used to worry about things like this when I was younger. You know — who I’d hump next, where I’d get my next spliff, whether P. Diddy would change his name again.

    But then I grew up. I realized that life is a marathon, not a sprint. And with four legs hitting de ground on each stride, I knew I could kick de sh*t out of most distance runners. And most of de losers on forums like this.

    So, my life is good. ‘Course, there’s also de fact that I got a huge contract from NBC and that red-headed pretty boy on Late Night. But hey, you all can’t be as talented as me. I mean, what can I say? Some of you I poop on, some I just keed.

    And for an example of losers who incur my wrath, see any post by ‘MacDude’. Or ‘Mary’. Or whatever he’s calling himself nowadays. If de rest of you geeks and nerds can just avoid acting like that tool, the T-dog will stay off your ass.

    And not poop on you.

  2. Well, the blame can be laid indirectly at the feet of Katrina. Katrina effected petroleum production which inadvertantly effected the use of diesel, which inadvertantly effected mattress foams, which inadvertantly burned to high heaven, which directly caused those solar flares.

    If it wasn’t for those flares….who knows how high that stock would’ve climbed…

  3. 2005 SHOWN AAPL to be the biggest name in momentum stocks (even bigger than GOOG).

    in 2005 the risk was all about iPod/iTunes market share – will Apple get unseated? And every time Apple proved the iPod/iTunes combo was a 1-2 punch, the stock flew skyward.

    But 2006 is far more demanding. For AAPL to remain flat, iPod/iTunes has to keep on keepin’ on. That is now old news. To actually demand a higher premium, Jobs and Co will have to convince studios to allow them to sell movies via iTunes _and_ successfully navigate the Intel transition by simultaniously releasing hardware and convincing software makers to invest in Universal Binaries.

  4. Why has Apple’s share price dropped?

    Because nobody wants a Intel based Mac with no software that’s why.

    Then there is sinking feeling that it’s all over for Mac OS X, with Apple doing nothing to prevent Microsoft, or anyone else, from installing Windows on a Mac.

    Meaning Apple wants to transition into a standard PC hardware company like Dell. Using inferior Intel processors that are at least a generation behind the Power G5.

    Dell has already retaliated by coming out with fancy line of PC’s to compete with Apple’s offerings. They are no dummies.

  5. Because Apple is begining to SUCK just like M$!!! Everybody can see it except you die-hard kool-aid drinkers.

    Another reason is Apple’s close association with Disney. Disney is the spawn of the devil that was started by a racist coke head. I hate Disney and all their child molesting cartoons too. Steve Jobs is going to burn in hell unless he cuts all ties with Disney.

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