Turnover are high, there are stable cash flows but why the world no. 1 Phone company stocks plunged from it’s all time high?
The reason is the wall street expected more from the Apple inc. as the sales were little lower what analyst analyzed and the outlook of shares were also less bullish as expected from the investors.
Apple stock fell by 3% on Tuesday continuing the slide after the company declared it’s Q1 reports and the stock value fell down by 15% from it’s all time high that was clocked in april 2015.
Share corrected itself later but if it fell more to 20% then it would be entering the bear market of stocks.
There are also concerns after the fresh Stock crisis in china that apple maybe losing its ground in china. Apple inc. gets around 25% of its sales From the Chinese consumers.
Research firms like Canalays said that apple which was a market leader in Mobile market slipped to third now. Apple is behind the Xiaomi and Huawei company in China.
Analyst says that nowadays people are buying costly phones but they expect it to use till 3-4 years because of high amount of investment. The same happened to the laptops and personal computers.
Investors wants the company to develop more products and also focus on other things than Iphone because investors are the only one to see the future and according to them if the company fails to bring the innovation in their phones then they would be loosin their esteemed consumers that are loyal to their brand.
Even Apple is indulging into buybacking it’s own shares so as to limit the supply of shares to keep the stock level high
Investors says that instead of buybacking their own shares they should be investing the same money in R&D to bring some more innovation.
An Apple a day keeps the doctor away But here Apple inc. do need a Doctor