Apple's shares swallow biggest loss in four years

Comments (26)
realjjj wrote:

The tablet report,if anything ,is favorable to Apple. It shows how well they managed to hold share,far better than they should have been allowed to and the projections for next year and beyond are far too high. The market for Apple priced products is limited and it’s easy to offer better value.Next year Apple tablet sales will grow,mostly on ipad Mini,how much share they’ll have depends on the competition and how much they manage to expand the market.

Dec 05, 2012 12:51pm EST  --  Report as abuse
Gonzales wrote:

I had and Iphone 5 and returned it-not happy with its content- No different from the 4– two other close friends did the same – all of us got different brands

Dec 05, 2012 1:29pm EST  --  Report as abuse
Johnny5k wrote:

I really don’t get the “iPhone 5 is the same as the 4s” argument, at all. Ever since I got the 5, every time I pick up my girlfriend’s iPhone 4, I can’t believe how big, clunky & heavy it feels. It sounds like an exaggeration, but it’s not. The fact that they were able to squeeze an LTE chip in there, make it that much thinner, and keep the same battery life is really impressive.

As for this latest drop – it makes no sense, other than maybe having to do with the tax uncertainty – but why hit Apple so hard and not everybody else? There’s been nothing but good news about Apple lately – iPad Mini selling well & holding ground on marketshare, iPhone 5 opening up to China and 50-some other markets ahead of schedule, iPhone 5 (and even older iPhone models) still selling extremely well. The next earnings report should be an absolute blowout – even more than usual – but it probably still won’t move the stock up and more than it dropped today for no reason. If only logic played a stronger role in the market.

Dec 05, 2012 2:47pm EST  --  Report as abuse
Harry079 wrote:

Hey it’s still up 36% for the year.

So what’s the worry?

Want more than one bite at the Apple?

There’s still some time left in 2012.

Dec 05, 2012 3:21pm EST  --  Report as abuse
Rich_F wrote:

i said this a year ago. the market is ripe for competitors since apple has such a huge premium for their products. the main reasons to pay this premium are ease of use due to a closed OS/platform, lack of competition and the apple ecosystem which ensures a consistent user experience and application availability. google apps and other android based applications are now mature enough to compete head to head. the competition is fierce you can now get a near equivalent IPad (sans the retina display) for about $210 from china (look up ainol hero ii tablet). the OS/consistent user experience is still a plus for apple but at 2.5X the cost? no my friends apple is on the way down. they’ll still have a good sized market share but by no means will they be able to keep the share they have and get the margins they now enjoy. was only a matter of time…

Dec 05, 2012 4:21pm EST  --  Report as abuse
AdamChew wrote:

I have a iPhone 5 and I love using it, many of my friends love theirs too.

Dec 05, 2012 5:14pm EST  --  Report as abuse
risko wrote:

As much as I oppose any plot theories I can’t help myself to read into this drop as an artificial stock price manipulation fueled by a few hedge funds. There’s no player in the smartphone/tablet game positioned better than Apple. Even Microsoft admits now that Steve Jobs was right, hardware and software should be “cooked” in the same kitchen. No other relevant brand has this crucial element but Apple. How can one investor, short or long term, see any drop in Apple’s growth.

Dec 05, 2012 5:47pm EST  --  Report as abuse
davidkachel wrote:

So, let me see if I understand this correctly.
APPLE needs another “hit it out of the part” product in order to remain relevant, but all that OTHER COMPANIES need do is to continue to copy Apple!!!????

How incredibly STUPID!!

Gimme a break. Besides, Steve Jobs left behind at least a decade of vision. Not only will I bet on Apple, I will go all in on Apple!

Dec 05, 2012 6:40pm EST  --  Report as abuse
Laker12 wrote:

Apple can stay ahead of the curve as long as its products are a year ahead of everyone else, if they are only at an equal level the stock will go down.

Dec 05, 2012 6:46pm EST  --  Report as abuse
mexx wrote:

Here is the answer:
Apple stock was getting sky-high last year not only because of the the good new products or really good sale, but MOSTLY because of the waiting of the magic iPhone5. This started just after ipone4. Well, expecting the magic with million rumors and slave media, can rise the stock much, much more than the real profits, that was not bad at all. And Wall Street, made Apple stock a pyramid using the hype.
Well iPone5 arrived. Very good phone, but not magic at all. So? It is normal the apple stock price to come to normal level. Of coarse , higher that last year, because of the good products and sale this year. I guess around 480$ per share if there is not panic to push it more down.
Guess who only sell between 700$ and 600$, until they force you to buy or hold with their media and analists? And they used the right moment just when come out iPhone5 and iPad mini, to have a buyers.
Do you get it now?

Dec 05, 2012 6:56pm EST  --  Report as abuse
Maxwells wrote:

Apple’s been disappointing their loyalists the past year, the iPhone 5 delayed, and hyped release resulted in the 4S same old iphone 4 with siri, the iphone 5 arrives a year later, same phone a half-inch longer?

Now the long-awaited “iPad mini” and it’s modeled after an older iPad 2 model, not the latest generation.

And discontinuing the iPad 3 just after 6-months after its release and replacing it with a New iPad 4 for no good reason other then they could, while drastically depreciating the value of iPad 3′s that loyal fans had recently purchased. Yeah I’d say Apple loyalists have been burned enough and are starting to look elsewhere.

Dec 05, 2012 6:58pm EST  --  Report as abuse
eMJayy wrote:

I’d say that the future is bleak for Apple in terms of global market share. The reshaping of the global mobile market in favour of Android was inevitable.

Apple’s products carry a 40% profit margin on average. That makes it impossible for them to have retained the majority market share position once any product type gets truly global adoption. The smartphone was never going to remain a product that was expensive to obtain. And neither is the tablet.

Apple keeps trying to artificially make it appear as if these devices are supposed to remain expensive forever just because they work well. That’s why they charge carriers $650 or more for a phone whose components only cost an average of $190 and and became capable of stashing $110+ billion in unused profits in offshore accounts around the world. Meanwhile, other phone makers are charging lower premiums for phones and tablets with the same or higher component value as the iPhone and iPad. This has opened up an increasingly growing price gap between iOS and Android. Globally, price is everything, because products that are considered expensive in the US get as much as 2-3 times more expensive by the time they hit shelves in most other countries. That’s why Apple struggles to sell iPhones in most of the countries it offers them to. Most people just aren’t wealthy enough to afford it.

Apple’s tablet market share supremacy to date was based on the fact that tablets hadn’t yet become globally embraced. Half the tablets sold ‘globally’ so far have been sold in the US, a country that only accounts for just short of 5% of the global population. Android tablet sales were until now mostly restricted to a handful of Western countries and prices were high. Now, tablets are becoming truly global because they are now reaching price points that allow the 75% of the global population who live in emerging markets to get involved – and these billions won’t ever be able to afford Apple’s products, no matter how much they may appeal to them. So basically, the writing is on the wall for Apple. The high end market is never more than 20% of any market that has truly gone global. Either they reduce their high profit margins to retain market share in the years to come, or allow their tablet market share to shrink down to mirror their minuscule mac market share in the PC market.

Dec 05, 2012 7:08pm EST  --  Report as abuse

Apple market share drops precipitating a equivalent drop in stock price. Apple loyalists start becoming conspiracy theorists. Really? Capital gains caused this? This is reality: Jobs dies, taking his innovation with him, and leaving Apple to become progressively more corporate in its competition strategy and its relationship with its customers (I own many Apple products and want to barf on the next genius I have to talk to). The problem with the loyalist’s attitude is that he/she fails to see the silver lining: this is a wake up call to Apple and a suggestion to pony up or diminish. Apple has been here before, and their behavior is predictable.

Samsung is a huge company with fingers in many different industries. Apple has to recognize that it is not so insular in its market anymore, and must double-down on its innovative strategies in order to earn profit. If it does not, then customers AND investors will continue to go elsewhere. The only reason why I use an iPhone is because it runs UNIX, but the product is becoming less and less friendly to users who want a reliable unit, and more friendly to aesthetic fans who want to brag about lightness and state-of-the-art hardware (Apple’s products are now getting terrible repair ratings, and I cringe every time I have to replace my battery). I don’t even live in a 4G city, and so I will need more cajoling than a miniaturized slab and updated components if Apple wants another $300 from me. I’m not going to jump ship any time soon; I will wait and see what Apple does.

Dec 05, 2012 7:40pm EST  --  Report as abuse
Shawnathan wrote:

I guess people just realized Apple is barely innovative now and all they do is make their products thin. I bet they’re gonna end up making all their products so thin to the point you can snap them in half. Apple is a bunch of money makers and even though they make the same things EVERY year, millions of people still buy the products they already have.

Dec 05, 2012 9:07pm EST  --  Report as abuse
Shawnathan wrote:

I guess people just realized Apple is barely innovative now and all they do is make their products thin. I bet they’re gonna end up making all their products so thin to the point you can snap them in half. Apple is a bunch of money makers and even though they make the same things EVERY year, millions of people still buy the products they already have.

Dec 05, 2012 9:07pm EST  --  Report as abuse
edgyinchina wrote:

This is not really about Apple at all… It’s about speculators jumping on the stock so short sellers can make money short term, then they’ll go long and make even more when Apple returns to the high side…
This is strickly a speculative move… nothing more…
Aplle products are far and away superior to anything else in the marketplace….

Dec 05, 2012 11:22pm EST  --  Report as abuse
CleanFun wrote:

If the portent of Steve’s death wasn’t a clear enough provocation for you to dump your shares…

Dec 06, 2012 12:14am EST  --  Report as abuse
Kea wrote:

Over priced underwhelming products . Cult following is shrinking . Jobs is dead . Samsung Galexy 3 is better than any Crapple phone . The competition has cought up to Crapple .It will be a slow decent but Crapple is going to be just another player . Oh I forgot , Crapple has an ace in the hole . The Long Island Medium who will comunicate with Jobs and he will provide new products for Crapple from the grave . Ok all of you Crapple cultists get ready , Go , ATTACK !!!!!!!!!!!!!!!!!

Dec 06, 2012 3:56am EST  --  Report as abuse

Dec 06, 2012 8:31am EST  --  Report as abuse
timerunner wrote:

hows that obamanomics working out for you?

Dec 06, 2012 8:48am EST  --  Report as abuse
Overcast451 wrote:

Apple will stay strong if they can stay ‘trendy’… that really sums it up. The products are priced way too high to really be competitive.

Dec 06, 2012 9:03am EST  --  Report as abuse
Abulafiah wrote:

davidkachel wrote:
“all that OTHER COMPANIES need do is to continue to copy Apple!!!????

How incredibly STUPID!!”

The problem is that they are not copying Apple. Apple is copying other companies. iPad Mini = Galaxy Tab from years ago. The Galaxy S3 is now way ahead of iPhone, with a bigger screen and more innovation.

What, exactly, is innovative about iPad now? Nothing! It is just a development of iPad 1. What is innovative about iPhone 5? Nothing! It is iPhone four in a slightly different shape.

Dec 06, 2012 9:59am EST  --  Report as abuse
trajan2448 wrote:

NO one except the very rich will escape the Obama depression. It will make his first miserable term look like spring break.

Dec 06, 2012 1:27pm EST  --  Report as abuse

I have an Apple iPod and I just “love” my iPod. I have an Apple iPhone 16 and I just “love” my Apple. I have every version of every Apple product and I will continue to upgrade until my daddy is bankrupt because I love my Apples more than my parents. I am an Apple fanboy and my “love” of Apple products is both relevant and should factor into the market. I can’t understand why everyone doesn’t just “love” their Apples.

Dec 06, 2012 8:27pm EST  --  Report as abuse
EthicsIntl wrote:

Apple will be history in less than ten years from now.

Overpriced stock, overpriced & unaffordable products.

Their business approach has evolved to a mediocre one. Apple product’s reliability is gone, the main aspect that brought them success and loyalty, gone forever. And the competition has caught up & even surpassed them.

Bye bye Apple.

Dec 06, 2012 10:29pm EST  --  Report as abuse
diddums wrote:

+ + Headline. I could not have put it better. The market is eating itself.

Dec 07, 2012 12:53am EST  --  Report as abuse
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