Apple (NASDAQ:AAPL) went through a storm lately on Wall Street, and investors do not know if this is a good time to buy stocks or it is the beginning of the end for the most valuable company, reports CNN Money.
Apple shares dropped 10% from a record $705.07, reached in mid September. The stock of the company recorded the largest drop on Tuesday, the fourth consecutive session in which shares of the US giant were plummeting.
Analysts polled by CNN Money say that this could be a natural correction for shares that had a sharp rise from $400 to over $700 in just 15 months. However, investors have reasons of concern that Apple could be eaten by a worm inside.
The first reason could be customer complaints about iPhone 5, map services being the most criticized. Many of those who have bought the latest version of the iPhone said they were totally dissatisfied with this application, which prompted Tim Cook to apologiz for Apple Maps errors and direct customers to competitors. At the same time, people were saying that Steve Jobs would have never allowed the launch of a product with so many flaws. In addition to maps service, another problem is that the iPhone 5 is not compatible with other accessories from Apple: users are forced to buy a special adapter.
Therefore, no one is surprised that Apple shares take a break from going up. The question is whether the drop will continue. The stock was up 0.80% to $640.91 at the Nasdaq closing on Wednesday.
Apple has now proven that it is not a miracle company and that it make mistakes. Investors agree that Apple can not stay too long on top with another version of the iPhone, but it has to come up with something new and innovative rapidly, to encourage again investors on Wall Street.
And this could be the iPad Mini, which is rumored to be the next gadget that Apple will release later this month. This mini tablet will be something that Amazon should fear, considering that Apple could set a price in direct competition with 7-inch Kindle Fire tablet.
Apple will issue the financial results on October 25, analysts estimating a 25% increase in revenue over last year, following a 30% increase in sales.
Reply