Apple stock drops as iPhone 5 sales linger
Apple stock dropped yesterday and stayed down as the day ended, after news came in that Apple had slashed orders for iPhone 5 parts. The original news came from Nikkei then later from The Wall Street Journal.
The stock ended the day at $501.75, down $18.55 or 3.57 percent. This is an ongoing problem where we have seen Apple’s stock continuously flutter, ever since Apple started looking like a company that lacked pure innovation.
A few weeks ago we got a report that the iPhone 4S was outselling the iPhone 5 in most countries around the world, with the exception of the US and some other wealthy countries. This is another first for Apple, seeing their previous mobile sell more than the newest model.
Apple are expected to sell around 75 million iPhone 5 devices before the end of its life cycle and will possibly sell more if the price goes down after. The company has denied that a cheap iPhone will go on sale next year, explaining this isn’t the way Apple make products.
With Samsung taking over the physical phone race and Google (Android) miles ahead in the OS battle, it seems Apple are losing out when it comes to mobiles. They may need a drastic rethink for iOS7 to bring them back to the top.
Whatever Apple does, we have always found that they will do it slow. Apple aren’t the type of company to go all out like Microsoft did with Windows 8, nor are they the type of company to make their hardware cheap and lacklustre.