Apple shares slide to 5-month low

“Shares of Apple Inc slid more than 4 percent on Wednesday to a five-month low as investors grew more uncertain about its ability to fend off unprecedented competition and untangle a snarled iPhone 5 supply chain,” Poornima Gupta reports for Reuters. “Apple’s slide was steeper than the S&P 500’s drop of about 2 percent the day after the U.S. election, putting the world’s most valuable technology company into bearish territory.”

“Apple, long a mainstay of many fund portfolios, has lost 20 percent — $130 billion of its market value — since hitting a record high in September. A 20 percent slump signals a bear market in a stock to Wall Street,” Gupta reports. “Fund managers cited fundamental concerns about its supply chain and intensifying competition from resurgent rivals such as Samsung Electronics and Amazon.com Inc, as well as profit-taking after the elections.”

Gupta reports, “Apple’s has maintained a torrid pace of growth in recent years thanks to a run of successful iPhones and iPads. But many investors question whether it can keep innovating and keep ahead of ever-more aggressive competition under new management, installed after the death of its chief inspiration Steve Jobs… Chairman Terry Gou of Taiwan’s Foxconn Technology Group, Apple’s main contract manufacturer, said on Wednesday the company was ‘falling short of meeting the huge demand’ for the phone.”

Read more in the full article here.

36 Comments

        1. The “best” is yet to come… said the man-child occupier of the White House.

          So all now bend over FORWARD!

          The greatest super power in history has been pawned by a Muslim.

          Enjoy the ride SUCKERS!

  1. The remarkable thing is, after the decline, it is ONLY a “5-month low.” I think we tend to forget that less than 4 years ago, AAPL was around $80. Now, it has significantly more than that JUST IN CASH per share.

      1. You don’t have to “remember” it. Just bring up the 5-year price chart for AAPL (on Google finance) and look back to the November 2008 to March 2009 time frame.

        While you have that chart up, note that for most of the time since those lows, AAPL is climbing (on average) in a very straight line. But during the last year or so, AAPL has had crazy price swings (mostly upward). If that original (more or less) steady climb had been followed upward, I think the price today would have been about $500. And we are well above that point, even after today. That won’t make any recent investors happy if they bought at $700+, but I’m satisfied as a long-term investor.

        1. You’re seeking logic from laughing boy and his comment shows little ability to think in this manner. Even the analysts seem to be misunderstanding how money works (or at least how consumers make purchases and thus affect a companies revenue). I started down the Apple path in Jan 2010 and their stock was under $250. Their stock is now $517B. Can ANY other tech company make claim to such a huge % growth? Though their rate of growth may slow, their continued growth is highly probable. Naysayers, iHaters, and hecklers don’t care about how great apple is doing. They’re of the “half-empty” variety. Even with a 20% loss, they still have a value 150% higher than the second place Google. Apple didn’t gain 1st place by NOT knowing what they’re doing……especially when they don’t have the advantage of being the low-cost provider.

      1. This happens during a lot of elections. They drop then they come back after a couple of days. But the fact is that the media is puking BS into the mouths of Americans. They are eating it up and believing it. That’s why it is dropping.

        1. The stock market was down dramatically today on European fears. That same Europe that followed the GOP style “severe austerity without stimulus” policy that has left them in a double dip recession with massive unemployment. If the GOP’s policies had been followed in the US, we’d have been in the same state as Europe.

          1. No, it was because of fear of the approaching “fiscal cliff,” which becomes more likely now that the situation in DC (after the election) has changed very little. Let’s hope the talk of cooperation in DC is real, and not just more talk followed by more paralysis.

            The bad stuff in Europe has been going on for a long time… The cause for the market drop (the day after the election) was OBVIOUSLY caused by the election results. Anyone who says that the market drop was caused by “European fears” is an idiot.

  2. It’s simple, investors are mainly interested in three numbers: top line, bottom line, and margins of which supply problems if severe enough can decimate them.

    Apple missed earnings last quarter because of iP5 supply shortage. AAPL has been in free fall since then because investors are afraid Apple will miss earnings again this quarter due to the same problems.

    All it takes is for Cook to come out from under his desk to explain the problems and solutions to address them. How about it, Cook? Are you up to the challenge?

    1. Amen! I guess he can’t do it because it isn’t so. Not with the supplier saying he can’t meet demand because it’s so difficult to build. Supply meeting demand. That’s what it’s all about with Apple. If they don’t fix that the stock will just keep going down. News about the Apple store app,Passport and Ferraris would be nice stories normally but they’re kind of insignificant now. I’m guessing that as soon as Tim Cook or some PR person can, they will release news about improving iPhone supplies. That’s what the stock needs badly. I would think Apple could at least get out there and spin the supply and demand issue favorably for Apple. Can’t they? Doesn’t seem that difficult. If you have more demand than you can meet that can be reasoned in two ways. One is poor planning and the other is just more demand that was expected. I’d like to see Apple work on that second scenario. C’mon Tim, get those PR folks out there and let them earn their money. They don’t have to lie, it’s all in how they phrase it. I realize Apple is generally tightlipped but someone needs to start promoting instead of sitting on their hands. Just saying.

  3. It is ridiculous that supply problems cause a slide. If your product is selling like hot cakes and you can’t keep them in stock, then your stock should be red hot! Huh? Hello-oh, Wall Street?

    1. Gawd, but you must be RICH, what with all the “shorting” you’ve been doing on AAPL over the past month. RIght? Wanna show us your balance sheet, smart man? Bet your money is nowhere near your mouth.

      1. Have not traded a single share in over a year. I simply thing Apple is overpriced. I last sold in the low $400s a year or so ago. Still have shares I started buying when it was less than $10/share (2001).

        I don’t do options and am a long term investor. I’ll start buying again when it approaches $400. If it doesn’t I’ll hold.

        No ulterior motives. It’s just overpriced.

    1. Yeah the Eurozone is spiraling down the same socialist drain.

      ‘A democracy will continue to exist up until the time that voters discover they can vote themselves generous gifts from the public treasury.’

  4. Unfortunately apple stock won’t bounce up anytime soon. At least there is no hope in 2012. Christmas sale won’t affect because of bad economy. $500 will be bottom line on this year. I guess apple is over. People slowly turn off interesting. No more innovation, dodging tax, lawsuit… This is real entity of apple today.

  5. Let’s not be silly.
    Market is down because European powerhouse Germany is feeling its legs wobbling from holding up Greece, Spain, Italy and others. If Germany’s ‘legs’ fail, the Euro will tumble.

    1. You mean that Europe has problems with socialism?

      But we are just getting started the US and trying it out here. We have a very skilled expert now in the White House who will show the whole world how Socialism is done.

      These Europeans are all amateurs.

      THE BEST IS YET TO COME! SO BEND FORWARD

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.