What Has Happened to Apples Share Prices

Written by on October 16, 2012 in Technology - No comments | Print this page

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After months of build-up, the iPhone 5 finally launched on the 21st September and was an instant sell-out success. 5 million of the devices were sold in just 3 days, with many Apple stores running out of stock much earlier than they were expecting due to the intense volume of sales. One would expect that this great achievement for the company’s profits would be good news for shareholders, and initially it was. On the Friday that the phone went on sale, shares hit $705.07 each, a record high for the company. However, surprisingly, the price of shares rapidly decreased in the days following the product’s launch.

It is thought that the rapid selling of the devices actually panicked investors. The fact that stores ran out of stock raised concerns over supply-and-demand. With an overwhelming amount of customers requesting the taller, lighter, sleeker iPhone 5, Apple could end up receiving a lot of bad press if they fail to deliver. Apple CEO Tim Cook confessed that the company was facing a challenge in supplying the amount of phones wanted by the public; an admission that would not have filled shareholders with confidence.

By the Monday morning after the Friday launch, investors had quickly begun selling their shares – this led to the stock falling by 2.4% throughout the day. Although it stabilised slightly and closed with a smaller overall decrease of 1.3%, prices continued to slide over the next week.

It is also being speculated that the slip in the stock market is due to quite heavy initial criticism of the phone by people who have bought it. Glitches in the software and widely publicized problems with the mapping apps have left quite a lot of customers feeling underwhelmed by the iPhone 5. Again, this poses a potential threat to Apple’s reputation in the press. As well as shareholders showing concern over these issues, investors who have chanced spread betting on Apple could be facing unexpected results with this overall dip of 6%.

However, it is important to remember that Apple currently remains the most valuable company worldwide. In the year-to-date, stock is still up by 64% –  a figure which is unlikely to drop significantly due to a few technical glitches and longer-than-expected waiting lists. The company is also due to report enormous profits due to the iPhone 5, as well as the iPad Mini which is expected to launch by the end of the year.

This is a guest post written by Adam Barley – Adam has been writing articles for numerous different areas of interest for a couple of years now and has become and experienced writer for many sources.

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