In the last 2 weeks Apple’s market value has fallen dramatically. Since 20th July, according to Business Insider:
Apple stock has been dropping since July 20, the day before it reported earnings. As of 4th August, for example, stocks were down by more than 14%
And that’s a LOT of money. $90 BILLION in fact. So, the big question is why? Well, it would seem analysts (yes, those guys again) are getting a little bit edgy about Apple’s failure to diversify. This is a HUGE weakness in the corporation as Tim Cook knows full well. They are utterly reliant on iPhone sales, which is what the Apple Watch was all about, creating a new revenue stream.
The problem is laid bare in this graphic courtesy of Macrumours…
Yep, THAT’s how much Apple are reliant on iPhone sales. And every quarter that goes by, the iPod (note it doesn’t even warrant a category anymore) and iPad slices of the pie get smaller and smaller in real numbers.
Step forward the Apple Watch. Off it went, like a train – and then it derailed, spectacularly, apparently selling less in numbers than even the humble iPod leaving Apple with the same problem as before.
How to pull off the magic just one more time? Let’s be fair, they did ok with the iPhone 6 and 6 Plus despite them both being either badly manufactured (bendy or having the propensity to set on fire) or just looking plain ridiculous (the 6 plus is stupid) but iPhonians lapped it up despite it being the same old, same old software just in a bigger case.
Everything else they don’t seem particularly interested in.
And since everything else is dropping, it only takes one botched iPhone launch to create havoc.
It’s unclear exactly what caused the slip in Apple’s stock, but Bank of America Merrill Lynch recently downgraded Apple stock from “Buy” to “Neutral” with a new stock-price target of $130 from $142.
Analysts have been concerned about Apple’s reliance on the iPhone, whose sales are slowing, and think it will be hard for Apple to grow its smartphone market share in China — last quarter, Apple’s share slipped into third place behind Xiaomi and Huawei, according to Canalys.
Are even the iPhonians of Wall Street starting to see through the Emperors New Clothes?