Apple recently suffered a major setback when its shared dropped below $90. Since 2014, this has been the first time when the company saw such a drastic fall. It fell to as low as $89.47 and making a slight recovery towards the end of the week closing $90.34.
It is speculated that the Component suppliers in Taiwan will receive fewer orders in the last 2 quarters of 2016, than they did for the same period in 2015. These are indications of a slow demand ahead of the launch of the new flagship iPhone later this year in September.
Owing to the drop in its share value, the Cupertino giant is pushed away from the top spot by Alphabet Inc, which is now the World’s largest company by market capitalization. As per the reports by Reuters, Apple and Google each had a market value of about $495 billion. But, last year Apple’s market capitalization took a big hit, and fell by more than $200 billion.
Ever since Apple has posted its first revenue drop in 13 years and first-ever quarterly decline in iPhone sales the confidence of the company has shaken. Even the Wall Steer has its concerns about the demand of Apple products.
Sales of the iPhone are taking a hit in the home-country as well, said a Report. Apple is now making bets on the developing countries. A major contribution here is China, where Apple sees high prospects. But, the results have been disappointing so far as the revenue fell by more than 25% in the first quarter. This slump is credited to the local Chinese manufacturers such as Huawei and Xiaomi, as they have priced their phones below the $200 mark.
“The market is saturated and they have no massive growth drivers outside of the iPhone,” said Pacific Crest analyst Andy Hargreaves, but he still recommends buying the Apple stock.