What’s happening to Apple’s stock is what no iPhone user ever wants to see happen to their device: dropping.
Reuters reported that, yesterday (May 12), the tech giant’s share price fell below $90 for the first time since 2014. (While the price did close out the day at just above $90 at $90.34, it was still a 2.35 percent loss.)
What’s to blame for this apparent lack of market faith in Apple? As the outlet attests, it’s rooted in the observation that, unlike in years past, consumers don’t seem too excited about the next iPhone.
As Rosenblatt Securities Analyst Jun Zhang commented to Reuters: “People are getting negative data points about component orders and production forecasts” on the next model iPhone, which is expected to be released in September, per Apple’s practice, “and the features on the new iPhone do not seem to be a big change from the 6s.”
A report from Nikkei Asia Review that iPhone component suppliers in Taiwan will receive fewer orders from Apple in the second half of 2016 than they did in the same period last year, shares Reuters, only compounded Wall Street’s skepticism regarding Apple, which was born of the company having last month posted its first-ever quarterly decline in iPhone sales and first revenue drop in 13 years.
With only the vaunted — and yet now even troubled — iPhone being viewed as Apple’s only “massive growth [driver],” as Pacific Crest Analyst Andy Hargreaves observed to Reuters, industry pundits are left wondering if there is any hope for the tech giant to reverse its revenue curse.
PYMNTS CEO Karen Webster believes that there is, having just outlined a potential strategy for Apple earlier this week. In her estimation, it’s going to take a lot more than merely focusing on its bread-and-butter smartphone for the company to right its ship — although that does offer a jumping-off point for a longer-term, comprehensive plan.