Apple stock continues to plunge

Apple stock continues to plungeAs we’ve observed several hundred times in the past, Apple is always quite keen to talk about how well things are going at its keynotes, be it iPhones, iPods, MacBooks, OSX, App Store downloads… Essentially, it’s all sunshine and rainbows at Apple. Or is it?

See, despite all that, Apple’s stock continues to plummet, hitting its lowest point since February this past Thursday. What the…?

Apple’s shares dropped $11.26 to $525.62, marking a 25% drop from a record high ($702.10) set in mid-September – just before the iPhone 5 launch.

How come? In the words of Homer J: “Don’t ask me how the economy works.” Fortunately Jeffrey Gundlach, portfolio manager at DoubleLine Capital, is on hand to explain.

"Investors had believed Apple would take over the world,” begins Jeff. “Management was flawless, its products were in infinite demand and competition couldn't make a dent. People overbelieved in Apple."

Various analysts further explain that Apple’s stock plunge is as a result of investment taxation concerns, profit compression (as costs increase and competition intensifies), a "softening macroeconomy" (less discretionary income for gadgets), and the loss of Steve Jobs.

Many are predicting that the Apple bubble is about to burst. What goes up…

via: USA Today

Read more about: Apple iPad 4Apple iPad miniApple iPhone 5iOS

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14 comments

Pondlife  Nov. 17, 2012 at 14:47

Yep has lost ground on those highs big time but at a comparable level to earlier in the year.

universe1992  Nov. 17, 2012 at 15:07

The ishit 5 didn't excel like they thought the apple bubble is deflating and people are moving away to android and even windows phone 8

JanSt / MOD  Nov. 17, 2012 at 16:08

The ishit 5 didn't excel like they thought the apple bubble is deflating and people are moving away to android and even windows phone 8

hahahahahahahahaha Thanks, I needed that.

barrybarryk  Nov. 17, 2012 at 16:13

The rumour they're planning on ditching Intel processors from their laptops and desktops definitely isn't helping. I doubt it's true, but even a rumour is enough to torch share prices

JanSt / MOD  Nov. 17, 2012 at 16:24

We are talking about the kind of people who either caused or failed to predict the 2008 bomb... Are we still giving sh*ts about the nonsense they spout?

They are Lord Sugar and D > Toupe< Trump types - remember Sugar? "The iPod's gonna fail"? Trump: Obama caused Sandy to look like a leader... We are talking overpaid nutters.

TJ Skywasher  Nov. 17, 2012 at 17:11

A temporary dip, it'll pick up again in the new year when their 4th quarter earnings and sales are through the roof and we get into the next raft of product releases.

Pondlife  Nov. 17, 2012 at 18:46

The rumour they're planning on ditching Intel processors from their laptops and desktops definitely isn't helping. I doubt it's true, but even a rumour is enough to torch share prices

Why would that harm the price?

------
That was a successful ploy by Obama then Jan ;)

barrybarryk  Nov. 17, 2012 at 22:24

The rumour they're planning on ditching Intel processors from their laptops and desktops definitely isn't helping. I doubt it's true, but even a rumour is enough to torch share prices

Why would that harm the price?

------
That was a successful ploy by Obama then Jan ;)
Because it would be the worst idea since the concrete boat. Apple has always been a premium computer brand and if they think anyone is going to pay over £1k for an AMD powered laptop or desktop (or closer to £2k in some cases) they're living in cuckoo land. Any talk of them moving to ARM SoCs for their desktops and laptops is just ridiculous though

Pondlife  Nov. 17, 2012 at 22:33

They were selling overpriced computers long before they went x86 though

barrybarryk  Nov. 17, 2012 at 22:48

No they really weren't, not anywhere near the numbers they have now. But when they were PowerPC based, they were specialist machines, that's how they justified the price, labs were full of them. Most macs these days have windows installed on them along with OS X, moving away from x86 would render not only their existing software unusable but also Windows and all the software it supports. It would just be an awful awful idea.

Even moving from Intel to AMD and keeping an x86 platform would be a crap idea since AMD processors and motherboards are a far cry away from the premium image Apple needs to sustain to sell it's gear.

Pondlife  Nov. 17, 2012 at 23:06

I'd be very surprised if most macs had windows installed too.

whatyadoinsucka  Nov. 18, 2012 at 08:16

Maybe shareholders taking there profits..

Pondlife  Nov. 18, 2012 at 13:00

Would have made more sense for them to take their profits when there were more to take last two months back.

whatyadoinsucka  Nov. 18, 2012 at 18:05

Would have made more sense for them to take their profits when there were more to take last two months back.
With hindsight of course it would have been best to sell a few months ago.. Simple buy and sell economics these have been oversold for months hence the price dropping back to pre summers lows

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