Four reasons Apple shares fall - 1BiTv.com

Four reasons Apple shares fall

Apple was once the apple of Wall Street.


Four reasons Apple shares fall


The first American company that reached a market value of a trillion dollars, the technology giant boasted trending products, lots of cash, more than the economies of some countries, and consumers so loyal that they are willing to spend the night on the street.
But in recent weeks, their situation has changed dramatically.
Stock prices have fallen by more than 20% since October.
The stock price of the company now varies below $ 180 and remains at around 2.3% in 2018.
So what happened to Apple?
1. Investors are concerned about iPhone sales.
In September, Apple introduced a new product line, but it is unclear whether the release of this product will cause a stir.
The company's 0-5% annualized forecast during the holiday season - usually the time when families are stocking up with the latest gadgets - has disappointed investors, prompting a steep market sale.

Recent announcements of production cuts at some firm suppliers, such as Lumentum, have heightened concern, although such steps are notoriously difficult to interpret. Apple exacerbated the situation with its decision to stop saying how many iPhones, iPads and other products it sells every quarter, raising suspicions that it has something to hide.
2. Apple high prices can leave it unprotected.
In recent years, Apple has responded to the slowdown in smartphone sales by raising prices — a step that has helped the company get record-breaking revenues, even though the industry as a whole is declining.
But global and US growth is expected to slow, and recent consumer spending figures are mixed. Apple requires $ 750 for the cheapest new iPhones, this is a very risky move.
"Obviously, the average selling price trend cannot last forever," said Angelo Zino, CFRA equity analyst. "I think the real problem for investors is how long they can continue this."
3. Investors are not yet sure about Apple’s business.
Apple has identified its business service, which includes elements such as ApplePay, Apple Music and the App Store, as the next big growth driver. It aims to withdraw $ 50 billion in revenue from services by 2020, relying on its large user base.

But investors generally have a lot of questions. For example, Apple has not officially shared its plans for television and film, and its goals for penetrating the healthcare industry also remain relatively unclear. Analysts will have to adjust to a business that is managed by smaller regular payments, guided by smaller regular payments, said analyst Carolina Milanesi at marketing research firm Creative Strategies. But Mrs. Milanesi thinks that it’s still premature to worry.
“If we know that iPhone sales will be either standard, or sales will go down, and then there’s nothing else to compensate, then of course there is cause for concern, but I think it’s too early,” she said.
"We will see everything in about a year"
4. Apple reflects broader market problems, such as trade tensions between the US and China.
In recent weeks, the technology sector has suffered greatly, as investors left the industry, which led to an increase in the market at the beginning of the year.
China risks that Greater China, including Hong Kong and Taiwan, is the source of about 20% of the firm’s revenue.
He also relies on manufacturers there, although his products have been exempted from tariffs so far.
"This product cycle does not seem to reach the levels everyone hoped for," Mr. Ives said. “But I don’t believe that Apple’s history will make wider changes if we look at the next two, three, four years.”


22.11.2018 11:18:50
(Automatic translation)




Apple

American corporation, manufacturer of personal and tablet computers, audio players, phones, software.


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