Apple Suffers Largest Share Price Decrease in Four Years

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wemakeourfuture

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[citation][nom]boulbox[/nom]@hate machineI agree with you, China barely even buy Apple products because they are so overpriced(don't know why you said a lot of Chinese people have them though). They don't fall for Apples bullshit of paying $300 for an iPad when you can get a galaxy tab or note for so much cheaper and better.[/citation]

This is so completely wrong at every level.

The average Chinese makes $4000 a year, they cannot afford a $700 USD phone. Can they afford it, no. Do they want one, yes. That's like an American buying a phone for $5000 not many are going to buy it. Since China has 1.3 Billion people there are enough people there to generate billions for Apple. 15-20% of Apple's Revenue come from Chinese customers.

Apple is huge in China among those who can afford it. The average Chinese buys cheap Android, not Samsung S3 or Note II, they cannot afford those either. Android has 90% of the market because those are the cheap, cheap low-end Android sets, not the flagship ones.

In 3 months Apple had $7.9 Billion in Revenue in China, but wait no one in China buys Apple right?

By the way, Apple's iPad has over 70% marketshare of the tablets in China
http://news.cnet.com/8301-13579_3-57555900-37/ipad-holds-71-percent-of-chinas-tablet-market-report-says/

You have ZERO clue about what you're writing.


Here's an idea:

1. Research
2. Analyze
3. Make informed comments
 

house70

Splendid
[citation][nom]chewbie[/nom]So many people here, especially techies don't understand that apple products are overpriced because they're somewhat of a status symbol. People don't buy them for the specs alone...[/citation]
What people like you don't understand is the fact that Apple products USED to be a status symbol... nowadays one can buy an iPhone for peanuts with subsidies and such, so their clients are right back in the same category with the rest of the consumers. Owning an iPhone nowadays means only your phone is identical to the next dude's iPhone. The brand value (if there ever was any) is diluted to the point of meaningless.
 
G

Guest

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Well Apple has popularized two product categories in recent years, which give them a huge headstart and has reaping lots of profits for the last few years. But as competitors start to catch up, their dominance in these two product categories are now threatened. It is obvious Apple will have to either sacrifice the profit margin for market share, or sacrifice the market share for profit margin. Current level of stock price is based on the assumption that Apple will continue to have their market share AND profit margin, which will not be true in the future. Smarter investors see what direction the wind is blowing and is now unloading the shares.

It is not easy to be the top company with the biggest market cap, especially when most of the company revenue is tied to two products. Even Microsoft which has a lot more profitable product lines had not been able to maintained their 600 billions market cap in the late 90s. Apple has a good run, now it is time for their management to choose their future company direction wisely: (1) try to be the company that continue to invent new markets by bringing out new product category that people have not known they wanted, but without Steve Job, can they do it? (2) try to be like every other rich companies, diversify! It is not healthy to bet on the whole company futures in only two products. Now they have the cash they should try to do more. Yes that will mean a lot more work for the top management but that's why they have been paid highly for.

And stop spending so much money on lawyers, lawsuits will not help the company in any significant way in the long run.
 
G

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[The minute you think that Android (Google) is "good" and that Apple is "Bad" is the day that you as a consumer have lost. They are simply companies that provide products. Personally I dislike Apple products, but it is because I do not like the UI and design philosophy, not because they are evil. similarly I like windows based devices because they integrate well with each-other and typically play nice with other platforms, and (frankly) because it is what I am use to, but that hardly makes MS a 'good' company.]

No no... you spoiled all the fun. MS is the Old Republic which the evil Steve Lord managed to usurp power from. Then the order of Jelly Bean rally together and fight a Galaxy wide rebellion to win freedom and openness for all people.
 
G

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While I do not like APPLE, I also do not like M$ attempt at shoving a closed ecosystem on to PCs that M$ does not even manufacture! At least the Apple Empire is not trying to expand onto the hardware of other PC makers! Apple makes Its money as a retailer, and if M$ wants to do this with the hardware it directly makes, fine, but M$ should not be allowed to take control of third party hardware in such a way! So say what you will about the evil Empire of apple, but the Evil Empire of Microsoft is trying to take over the neighboring third party PC manufacturers galaxy through its OS Dark Lord windows 8!
 

ojas

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[citation][nom]teobot@hotmailcom[/nom]The reason was that Apple lost to Nokia on a biggest deal to grab the China market of smartphone. China largest telecom company said that they will go with Nokia flagship 920 instead of paying higher subsidies on the iphone.http://www.forbes.com/sites/greats [...] -in-china/[/citation]
We're paying $700+ with contract here in India for the iphone 4S base model. So most people end up buying the iphone 4 or 3G or some older model. I know very few people who have the money or the will to buy the 4S or 5. Seriously, i think the only place where Apple really sells is the US and maybe Europe.

[citation][nom]drosencraft[/nom]blurr91 is right. Whatever you think of Apple, the stock market is another entity. It behaves less rationally than most want to admit. People kept betting on Apple as if they would make more and more things, overcome all other competition, and dominate all markets. The stock was bought up on the assumption that the price would rise continually. Now that the hype is wearing off, that it is becoming apparent Apple isn't magic and can't just pull things out a hat and expect people to buy them, investors are cashing out while they're ahead. In other words, Apple stock was a bubble, and that bubble is bursting. It's not as severe as a housing market bubble, or a bubble on the entire internet and PC market, but it works the same way. Honestly, no one knows how far Apple stock will fall, but it will keep losing value until Apple or its competitors give it a reason to stop falling.[/citation]
Stole the words from my fingers with the "bubble" comment!
 

DSpider

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6% is chump change for them. But then again, $35 billion is an obscene amount.

If 6% means $35 billion (billion with a "B"), 100% means $500 billion! My god...

[citation][nom]rawoysters[/nom]That "guy" is a girl. "Anna Peel"[/citation]

G.I.R.L - Guy In Real Life.
 

Spanky Deluxe

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People have been grasping for reasons why the stock price has gone own so much. The most likely cause seems to be because some clearing firms are raising margin requirements for trades in Apple due to the rogue trader from Rochdale Securities's activities. In terms of investments, Apple is seriously undervalued right now.

To be clear, this share price drop has nothing to do with Apple vs Google vs Microsoft, market share points, good vs evil etc. It's down to trader mumbo jumbo and just illustrates the dependence of the economy on a very small subset of people. Unfortunately, that's life.
 

cmi86

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It's the start of apples slide back down into their miniscule 7% market share. You can only shrink and re name over priced devices so many times before even the most naive apple users will start to catch on. Jobs was enough of a con artist to keep the masses brainwashed, however current management just doesn't have that ability to polish a turd. The masses are beginning to realize just how badly they have been being shammed, it's only a matter of time now and my local coffee shops will be rid of pompus jerks and their glowing apples.
 

halcyon

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Its just that the iPhone 5, maxiPad Mini, and new MaxiPad while okay, aren't magical next to the competition. ...and aren't really superior to the products they replaced (- the mini). A lot of folks were indeed disappointed and actually looked for alternatives only to realize the alternatives were quite a bit superior in many ways.
 

sulanis

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Apple is getting what they deserve for stabbing all there partners in the back! suing everyone for stupid reason that cost each company millions and the public sector millions as well, while poeple in the world are starving.

50% profit is unreal for any product, not that any other company is better, but Apple's head is in the clouds, just like RIMs was awhile ago, and look where they are now.

 
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