Two articles discuss and give views from different angles on Apple’s big stock drop. This one is a bit more of an overview about Apple overall and the company’s current innovation woes (it’s innovating, but not fast enough, too many 2.0, 3.0, 4.0s and not enough 1.0s) while this one gets more into the financial numbers & figures of it.
Basically, the cliff notes (pulling from both articles):
- Apple broke records! Hurray Huzzah!
- …but not by as much as investors were hoping! Ahhh panic!
- With ‘Ahhh panic!’ translating to a huge drop in its stock value and loss of billions, billions, in market value
- All part of a dropping trend since its stock peaked last September
- Why? (1) They’re just re-isssuing iPads, and iPhones over and over again w/o a new, fresher product to shake things up
- Why? (2) Perhaps more importantly, competition from Google’s Android system seen as an alternative that not only is more cost-friendly, but, and this is the killer here, actually less expensive
- Why? (3) Saturation in developed countries for smartphones—>Push to sell in up-and-coming countries like China, where, again, price differentials may be much more the deciding factor in iPhone vs. other smartphone
- Apple saw this coming, it knew its recent sales would not hit the high expectations
- Again, not innovative enough, Apple is basically just rolling out sequels to hit products leading to some impatience for launches of new franchises (to borrow some movie terms)