Apple is easily one of the most valuable companies in the world, not just the technology industry. However, recently Apple’s share price dipped below $400 per share for the first time since April. The deflating stock price resulted as a stockpile of unsold iPhones prompted Jefferies & Co. to lower its target price for Apple stock.
At the same time, a company called Global Equities Research also showed that low morale was causing employees to leave Apple. While Apple stock was trading as low as $398.05 per share yesterday, Apple stock closed down 2.7% to $402.54. Apple shares have fallen 24% this year, and the stock is down 43% compared to its record high of $705 in September.
While Apple stock is on the decline, competitor Google has seen its stock gain 23% this year.
Bloomberg reports that one reason for the stock decline is that many analysts are concerned that CEO Tim Cook is taking too long to deliver new breakthrough products. Reports indicate that retailers and wireless carriers currently have two times the normal level of iPhone inventory on hand and Apple is selling fewer handsets than expected. This would explain the latest trade-in offers and slashed prices on iPhone 5 smartphones from Best Buy and Walmart respectively.
Analyst Peter Misek from Jefferies recently wrote in a report that he expects Apple to build a maximum of 85 million iPhones in the second half of 2013 compared to previous estimates for 110 million units.
Many are expecting Apple to release cheaper versions of the iPhone and versions of the iPhone with larger screens. Those devices will go along way to helping Apple grow its market share according to many analysts. However, the next generation iPhones are not expected until the fall to accompany the launch of iOS 7.
The piracy police made one 9-year-old a very unhappy camper
ZMAX will come with a Snapdragon 400 processor and 720p display
UC Davis dares to go where Toyota won't with the Prius
An Apple spokesperson fires back over Microsoft's latest commercials
Engadget gets the scoop on Dell's latest "ultra-portable" notebook