Heads up: Top comment and controversy
Apple's stock price: It can go down, too?
15 January 2013 08:55 AM
By now the trajectory of any story about stock in tech giant Apple should be familiar. It goes up; soars; jumps. You buy an iPhone and Steve Jobs' replacement periodically presents a smaller, svelter iSomething that makes you want another one - and the stock rockets again. At least, this was the case, but now the rhythm might be changing. Apple's stock price took another hit on Monday - and Matt Zeitlin over at the Daily Beast has fascinating insight on the company's "continuing decline".
Since late October stock price has dropped 18 per cent, equivalent to a loss of $100 billion. It dropped another 3.6 per cent Monday as the Wall Street Journal reported Apple had to cut orders for iPhone 5 components in the face of declining demand.
Worse news, Apple's competitors might have finally figured out how to eat into its market. The company's share of the tablet market has dropped from two thirds to half. Phones on Android operating systems make up 75 per cent of new sales. According to Zeitlin, the problem comes down to this: "Apple is in the unfamiliar situation of having to adjust to an evolving market — rather than simply creating the market and watching its competitors stumble as they rush to keep up".
That's something to think on as the Silicon Valley firm waits for the 2015 completion of its bizarre "donut" headquarters. Presuming Apple's still around by then, that is.