Apple shares hit 16 month low
Apple’s shares dropped below $400 for the first time since December 2011. Shares were down to £398.11 on Wednesday, a 5.5% drop from the day before. Shares were valued at $402.80 on Tuesday.
Apple is due to release their quarterly results next week and these figures are leading analysts to believe that their results will be underwhelming.
Cirrus Logic, one of Apple’s suppliers recently reported a decline in sales, which seems to have triggered the fall in share value.
Apple has enjoyed great success in recent years, as sales of the iPhone and iPad, dominated mobile device sales, but market share has been declining. At the same time, rival company Samsung have been steadily increasing its market share, both in the smartphone and tablet sectors.
According to figures released by research company Gartner, Samsung sold 64.5million smartphones, while Apple sold 43.5million in the last quarter of 2012.
Samsung also doubled its market share of the tablet PC sector to 15.1%, while Apple saw its share slide by 8.1%, to 43.6% in the last three months of 2012.
Analysts have been disappointed by Apple’s recent behaviour. Rumours state that their next iPhone will be released in September, and not June as previously thought. A brand survey also found that Apple is perceived as less ‘inspiring’ that it was in 2012. Meanwhile, Samsung was found to be equally inspiring in the US.
Many investors now fear that Apple is losing its shine, and market dominance, and as a results revenues and profits may be damaged.