Apple’s Bruising Fall

Since late September last year, Apple has been battling the rout in its share price, now down by 44% since the end of Q3 of 2012. This has many of us wondering when and where all of this will eventually end.

Evidently, Apple is showing signs of slowing down, as all other companies do. Nevertheless, the company still remains hugely profitable and competitive. Yet, Apple’s fall in Wall Street has been very brutal that many investors are changing their views on the company.

This sudden change of events is very much unfortunate and remarkable at the same time. If one could remember, seven months ago Apple’s share price soared above $700, making Apple the world’s most valuable company. However by last week, stock price sunk to $392.05, the first time since 2011. According to analysts, this was brought about by news of Apple’s problem with one of its audio chips suppliers, prompting concerns about sales of the company’s products.

In the past seven months, $290B has been wiped off Apple’s value. What’s more difficult and shocking to note is that Apple now ranks among the biggest stock market losers over the same period, alongside the JC Penney Company.

According to analysts, what is happening with Apple is very much common on Wall Street. As the saying goes, all good things must come to an end; what goes up must also go down. With Apple’s stock price soaring in recent years, many noted that this could not be sustained forever. Hence, as wonderful and amazing Apple’s surge above $700 is, it is somehow expected that eventually everything would normalize and slow down, hence its precipitous plunge back below $400.

However, if we are to consider other factors besides stock prices, Apple as an organization is bigger and better today than ever before. It sells more iPhones and iPads today. It continuously expands its global reach. It is making a lot of money to the point that it has been clueless what to do with all its cash pile.

More so, we should remember that this is still Apple, albeit without its visionary founder Steve Jobs, this is essentially the same team that produced many of the most popular and successful products in the world. Are there more surprises in store for consumers and investors alike? Maybe all we could just do is wait and see.