December 5, 2012, was the darkest day in the recent business history of Apple. The closing ring of NASDAQ yesterday recorded the worst ever trading day for the Cupertino based company in the last 4 years. The shares of Apple closed at a price of $538.79 per share after reducing by 6.43% i.e a $37 per share loss in a single day.
If we speak in terms of business, Apple lost almost $34.9 Billion in a single trading day. The loss worths almost twice the entire market cap of Dell. This year, September 21 was the day when Apple had its all-time high trading day scoring $705 per share, but since that day, it has dropped almost by 24% of business stock. A positive sign for the company is that Apple is still above in the stock percentage by which it started this year i.e with $411.3 per share. Apple is having downfall just from the September peak shares of $705.57 per share.
Daniel Ernst, an analyst with Hudson Square Research, told:
“The wind blows slightly from the south instead of the east one particular morning and the stock is down 6%. It makes no sense. There are lines around the block for their products all around the world, No other company has that.”
Apple Feeling Heat, But Why?
Analysts have a different point of view about Apple’s Wednesday’s loss. There are so many factors that caused such a blow to Apple. One of the most important of them is that Apple is having a continuous downfall due to the increasing popularity of its biggest rival Android.
Also, Nokia too gave a sudden shock to Apple after it won over the iPhone maker to strike a deal with China Mobile (one of the biggest country’s operators) to sell their Windows Phone-powered Lumia flagship smartphones.
Apple these days is facing tough competition from Google, Samsung, Microsoft, and even Amazon. All of these competitors of Apple have been quite successful with their lineup of new and innovative devices. iPad was considered as the sole king of the tablet world, but now it has to fight hard against much cheaper Android rivals to stay in the business.
Apple’s latest iPad Mini was launched to capture the smaller tablet segments, but it also struggled against the cheap 7-inch Nexus 7, which has been doing a good business amongst the masses and the same goes for Amazon’s Kindle Fire HD. Microsoft’s newly launched Surface tablet has also made things much tougher for Apple.
Galaxy S3 from Samsung Electronics has also been really successful in challenging the dominance of the iPhone. The Korean Electronics giant reported last month that it has shipped more than 30 Million units of S3 so far with no signs of the sales slowing down.
International Data Corp (IDC) has predicted that Apple will lose its market shares in the tablet section this year. It says that Apple is expected to lose 2.5 percent in 2012, which means a stock of 53.8 percent this year from 56.3 percent in 2011. The firm also predicted the growth of Google’s Android to 42.7 percent this year from 2011’s 39.8 percent.