Apple still on the decline as shares slide under $400

hares in AAPL fell below the $400 mark today for the first time since 2011, as confidence in the company continues to decline after Q1 earnings didn't match analyst's expectations.

Stock prices fell $21.89 (5.1%) to $404.35 in early afternoon trading, but earlier in the day the company's shares were trading as low as $398.11, the lowest since late 2011. That decline represents a huge $21.8 billion decline in market valuation.

The news comes as no surprise after Apple has experienced a tough winter period, with stock down 42% from an all-time high of $705.07 last September. A combination of the death of Apple's leader and visionary Steve Jobs and Q1 results that didn't quite deliver, many people have suggested the company may simply not recover. Product announcements no longer have the same hype and showmanship associated with Jobs' customary style, and some of the company's top executives have been let go.

Apple is, however, expected to release updates to their wildly popular iPad in the coming months. Peter Misek, an analyst at Jefferies & Co., said that news of slowing sales of chips for Apple devices suggests a large decline in device sales in April/June. He suggests that the company is not likely to update the iPad mini in Q3 and that we may see an update to the full-size iPad late in the quarter.

The company is also rumoured to be working on a smartwatch, the "iWatch", which could prove to be another breakthrough product to bring the company's finances back to prosperity.

Source: TNWImage: For stockholders via Shutterstock

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The stock has been dropping from pure market manipulation. Analysts had a buy rating on the stock when it was in the 700's now all of a sudden they don't. They are still making more money then they ever have. Personally, I think they were overpriced and I love Apple products. The stock is down to a more reasonable level now and may be a good price point to jump in.

Bubbles burst. That's just how it is, every time. A maker of shiny iToys being the most valuable company in the history of the universe yada yada yada was kind of obscene anyway.

One major reason the stock has been dropping is Apple's dividend policy.

Despite having accumulated record-breaking cash-reserves, the management has made it clear they won't be sharing their bank with the stockholders by increasing the dividend payouts.

More greed => less dividend => less appeal to hold stock

I have to imagine of it slides to say $300 or so it will probably be a good time to buy all you can. Then wait until they release a redesigned iPhone next year with a probable ios refresh.

Apple is nothing without Jobs. Even then, when you're not innovating and your products cost 2x the cost of everyone else, you're going to lose money.

I've been saying this for a long time, but this is what happens when a company is waaaaay overvalued. The stock price had no business being as high as it is, so it is adjusting down to what it should have been at all along... Nothing more than that.

Avatar Roku said,
The company value is completely held up by two fad based iOS devices.

Almost.

Apple's extreme profitability come from one product -- the iPhone. Each iPhone generates 3x as much profit as each iPad. Yet Apple currently sells more iPhones than iPads.

It's just like any other business in the world. You can only sustain maximum sales, etc. for so long. A dip in everything WILL happen, even to Apple.

I have seriously considered buying some Microsoft stock. Right now they are pretty low, and there is some chance they'll slide into oblivion but I also think they could turn around spectacularly.

However Apple really has little to go but down. Whereas Microsoft is still full of talented people and because the shares are cheap the exposure is minimal compared to an Apple investment. I don't think Microsoft will ever die and there is still every chance of a massive comeback - look at what Apple achieved from where it was in the late 90s.

Whatever their next big reveal is, it better be BIG because if it's iPhone5 all over again I suspect the stocks will take another hit.

Everybody is doing or thinking of doing a smartwatch... If it's the only new inovation from Apple, I think they wont recover...

And let's not forget that iOS is starting to show it's age... Needs better features.

All the analysts suckered investors into buying stock then cashed out when it was high.its funny,it was so obvious from the beginning,and people like me have been saying exactly this was going to happen. If you lost your retirement fund or your kids college fund,I have no sympathy for you.

How long before the vapid headlines? "Microsoft poised to surpass AAPL in total market valuation!" "MSFT inches past AAPL in market valuation!" "Yesterday AAPL was a less valuable company than MSFT!"

/will probably be quite a while yet

smot said,
How long before the vapid headlines? "Microsoft poised to surpass AAPL in total market valuation!" "MSFT inches past AAPL in market valuation!" "Yesterday AAPL was a less valuable company than MSFT!"

/will probably be quite a while yet

If the iPhone 5S as it will be called is lackluster, the stock will go below $200 a share. Mark this post so that once it happens, you can look back and say I was right.

But the hardware isn't even the problem....its iOS. It has remained unchanged since day one. In the past 3 years Apple has been playing catch-up with only one major feature per phone. Siri was a last ditch effort to make the 4S not be so identical the 4. Then the 5 introduces a crappy mapping software when they had one that works perfectly. LAME!

So what could they ****ibly come up with for the 5S that no one has had already? Basically nothing. Because when you don't have true competition you have nothing to inspire or force you to change. this is the downside of proprietary platforms like Windows, iOS, Windows Phone and others. At leats with Windows hardware the OEM;s fight with features and price. But since only Apple has iOS, there is no one else with iOS to push APple. Imagine if the Galaxy Note 2 ran iOS and Samsung dropped all the same capabilities it has now on it. No one would even buy Apple's model because it would be like a cab version of a car. A stripped down plain expensive piece of crap. Which is what the iPhone is right now in comparison to many phones.

about 2 years ago, i purchased a Sony Vaio for 20% less than Macbook Pro (and featuring better features).
About a month ago, i purchased a Samsung Chronos for half the price in comparison with a Macbook Pro (excluding the resolution and SSD, better features in almost every aspect). So, for the same price that i can buy a macbook pro then i can buy 2 samsung chronos and with better specs (cpu and gpu).

Brony said,
about 2 years ago, i purchased a Sony Vaio for 20% less than Macbook Pro (and featuring better features).
About a month ago, i purchased a Samsung Chronos for half the price in comparison with a Macbook Pro (excluding the resolution and SSD, better features in almost every aspect). So, for the same price that i can buy a macbook pro then i can buy 2 samsung chronos and with better specs (cpu and gpu).

You also got Samsung's 'special features' (bloat) and all of those super cool stickers!

Peter PAD said,
Perhaps, Apple are coming to end its domination and perish

In gross terms, according the Pareto's distribution, the mobile market will be composed by a big company that controls 70% of the market (more or less) and the "rest" of companies. It is what we could call a "balanced market". Right now, exists two biggest players with 40% each one and the rest of players, it is not a real balance and, it is a matter of time until one of them will start winning over the other one.

Apple is doing incredibly well.. iPads are selling far better than any other tablet ever, Apple make more money form their app stores than all the others combined. iPhones are one of the most popular phones on the planet ever. Lets say their stock was overvalued and move on.

this makes no sense, company's books are solid, income solid, cash solid, business plan solid, products selling awesome, future products coming and predicted to be solid... this is defying logic.

You're looking at it wrong.
I'm sorry, I just couldn't resist. It was so open. Don't hate me. I'm just being funny :-p

Greed has no logic. The shareholders want Apple's unsustainable growth to continue forever. In other words, Apple was overvalued. If Apple releases solid products later this year, all will be fine.

Actually, not a bad time to buy Apple stock. Wish I knew where the bottom was. $350?

The underwhelming aspect of their latest iPhones are catching up to them. They're playing it safe for far too long. Time to see the innovation that went into the original iPhone and iPhone 4. Their PC line of products also needs some revamps, including an iOS option/touchscreen.

I've been an iPhone user since 2007, but unless I see something exciting... and not just a spec bump... or a catch up to a competition... something truly new or innovative... with the next iPhone or iOS 7... I'd be pretty hard pressed to get another iDevice. I was on the fence getting the 5, skeptical on the 4. People are going to jump ship for sure if a devoted apple user such as myself continues to be unimpressed.

Maybe it is concern that without Jobs, Apple isn't the company they originally invested in. Love him or hate him, he really was Apple (no offense to the employees). Without him at the helm, investors may look to get what they can from it and move on.

Apple is in a extended support period currently or perhaps safemode! Apple's launch events lack the stimulai Jobs brought and Apple has only improved upon its products (hd display and thining Imacs)! Jobs made the rebirth of Apple in 98 and got it back to the surface again!

Apple's stock price has been based on perceived value, never actual value. It doesn't matter what the books look like as it's based on people's perception of Apple.

rippleman said,
this makes no sense, company's books are solid, income solid, cash solid, business plan solid, products selling awesome, future products coming and predicted to be solid... this is defying logic.

On Wallstreet this makes perfect sense. Because everyone knows all these facts and the excitement for new products has disappeared so the hype is dwindling. That's what happened to MS over 10 years ago, financially they're doing better year after year but no one cares. Same goes for Intel. No hype and that's what drives stock prices (not always but it did make Apple the most valuable company on the planet, which was totally ridiculous).

rippleman said,
this makes no sense, company's books are solid, income solid, cash solid, business plan solid, products selling awesome, future products coming and predicted to be solid... this is defying logic.

Grotesquely overvalued is what they were. Now it's coming back down to a more realistic number. Eventually they'll end up where MS today perhaps. They'll still be turning profit, creating nice products that people want, etc. No one will care about that though and their stock price will level off and quite a bit lower than what it is right now.

I think the bottom will be a month after release of Galaxy S4 on Verizon (meaning after T-Mobile, Sprint and AT&T have all released their version of GS4).. =/

rippleman said,
this makes no sense, company's books are solid, income solid, cash solid, business plan solid, products selling awesome, future products coming and predicted to be solid... this is defying logic.

The truth is that Apple's stock price was just another economic bubble. It's long past time for it to fall back down to Earth.

rippleman said,
this makes no sense, company's books are solid, income solid, cash solid, business plan solid, products selling awesome, future products coming and predicted to be solid... this is defying logic.

I realize that a lot of people here don't like Apple, but I think that people who realize just how irrational this is will end up profiting in the end.

laserfloyd said,

Grotesquely overvalued is what they were. Now it's coming back down to a more realistic number. Eventually they'll end up where MS today perhaps. They'll still be turning profit, creating nice products that people want, etc. No one will care about that though and their stock price will level off and quite a bit lower than what it is right now.

What? Microsoft's stock was split 9 times. Take away the split and it would be worth over $8000 per share. Which Apple's stock has never reach.

http://usatoday30.usatoday.com...1-12-microsoft-splits_N.htm

Read this...hit it with some inflation and downtime and I would say, MS stock unsplit would be worth $6000+ per share. Apple hot $700.

Microsoft has more staying power than Apple has. MS has NEVER been on the verge of bankruptcy. NEVER!!!!

http://download.microsoft.com/...27408b655/msftpricehist.xls

Read the link...its an excel sheet directly from MS showing the splits and how much their stock was worth before them.

Gee, I couldn't imagine why, when their computers cost 3-4 times of a regular PC! You could get a top of the line gaming pc for the same price of a Macbook! Their products are horribly overpriced and they are not even made in the USA! It appears Apple is returning back to its pre-jobs era!

Edited by Atomic Wanderer Chicken, Apr 17 2013, 11:41pm :

HP, Dell and every other laptop makers also sell more expensive laptops, Apple don't just happen to make budget laptops.

And 3 to 4 times more expensive? Yeah, that's bulls**t.

Apple sells MacBooks almost twice the price of similarly configured PCs from Dell, HP, Lenovo, etc. The more expensive PCs tend to have higher end configuration, and even then are not that much more expensive than the same MacBook..!

lctb51 said,
Gee, I couldn't imagine why, when their computers cost 3-4 times of a regular PC! You could get a top of the line gaming pc for the same price of a Macbook! Their products are horribly overpriced and they are not even made in the USA! It appears Apple is returning back to its pre-jobs era!

What the hell has made in the USA got to do with anything? You think virtually any tech product is made in the USA any more, be it hardware or software? Everything is outsourced abroad because it's cheaper to make which means more profit. Virtually every big company is guilty of this, with only smaller start-ups and '10 man companies' who are doing everything domestically.

And at the end of the day Apple stuff costs more but generally has:

* A higher grade of design, fit and finish. Hate on Apple all you want but you simply can't deny it, unless you're blind or just in denial.

* Far higher residuals for old kit - meaning the money you spend up front can be reclaimed somewhat if you maintain a strict turnaround on kit, say every two years - and keep upgrading the the latest product. For example I owned an iMac for 1.5 years.. I grew weary of its weak graphics card to sold it (on this very forum in fact) and with the proceeds was able to buy a far more up to date modern Wintel gaming PC AND decent monitor. I wouldn't have made the same kind of cash if it were the other way round, and I was looking to buy a Mac...

TruckWEB said,

Not everyone wants to run Windows... I prefer OSX.

True. The don't. But then again...the Mac is older than the first WIndows PC by only about 5 years. Explain why in 30 years Apple has a total of less PC's, than were sold for Windows in just the last 2 years?

Cost isn't the only issue for the Mac, its limitations is the other. Even Macs that run Windows don't run Windows as good as a native Windows PC thanks to Apple's horrible software driver writes. In fact, any application made by Apple is a pure garbage. Only those written by 3rd parties are good. I use to love Final Cut Pro. But after Apple bought it and gave that crap called FCP X, I lost it and vowed to never by another Mac PC....

The iPad is boring, the iPod sales have been dropping thanks to in-house cannibalizing from iPad an iPhone which is what Apple wants. Remember in the beginning the Touch and iPhone always shared the same hardware. Then Apple staggered the hardware to encourage iPhones sales over iPod sales which worked as they plan to phase out the Touch altogether.

The iPad has remained virtually the same since day one. Its the 3rd parties that keep it alive. Apple hasn't done anything with it software-wide or hardware-wise.

Apple is working on what they hope is the next fad device. However, stockholders are not imporessed. The desth of Steve Jobs has nothing to do with it. Its all about how Apple has taken competition to the courtroom and not the store shelves, and how their products for 6 years have been uneventful and how Samsung is kicking their butts every quarter with innovative, better products at lower costs and how Apple is trying to break their relationship with Samsung which is going ot lead to half-baked problematic products and the stockholders are simply seeing the writing on the wall.

if this is the roadmap Steve Jobs left for Tim Cook to follow, then he wasn't as visionary as you all make him out to be. Because he being here don't make crappy products better.

Lprd2007 said,
Nice!

It is not nice for the investors, those who were putting in money for their retirement, the Apple employees who received stock as part of their pay package, etc.

For the Apple fanboys who last week were laughing because Microsoft dropped 4% in one day, claiming that it was the end of Microsoft, for them I say "Nice!"

SoylentG said,

It is not nice for the investors, those who were putting in money for their retirement, the Apple employees who received stock as part of their pay package, etc.

For the Apple fanboys who last week were laughing because Microsoft dropped 4% in one day, claiming that it was the end of Microsoft, for them I say "Nice!"

It's the stock market...it's the risk you take. It's not like you're trapped into keeping APPL stock, Investors have the option to sell...whatever is in your best interest

tsupersonic said,
It's the stock market...it's the risk you take. It's not like you're trapped into keeping APPL stock, Investors have the option to sell...whatever is in your best interest

I know how the markets work, as a shareholder in both AAPL and MSFT, I don't take any joy in seeing people invested in those or any other company lose money.

But the people who were mocking MSFT last week, who were happy to see people lose money because they had the gall to invest in MSFT rather than AAPL, for them I am laughing my ass off (literally - it fell off a few hours ago).

SoylentG said,

It is not nice for the investors, those who were putting in money for their retirement, the Apple employees who received stock as part of their pay package, etc.

For the Apple fanboys who last week were laughing because Microsoft dropped 4% in one day, claiming that it was the end of Microsoft, for them I say "Nice!"

anyone who put "too much" money into apple wasn't investing right to start with.... this is exactly why you diversity...

tsupersonic said,
It's not like you're trapped into keeping APPL stock

To be pedantic there are circumstances where you're not allowed to sell stocks for a period of time.

MVD said,

Suuuure ya are.

why is it so hard to believe someone holds stock? I own stock in AAPL, GOOG, MSTF, IBM, NOK, CSCO (Cisco), and about 120 other tech companies.... it's called diversification

SoylentG said,

I know how the markets work, as a shareholder in both AAPL and MSFT, I don't take any joy in seeing people invested in those or any other company lose money.

But the people who were mocking MSFT last week, who were happy to see people lose money because they had the gall to invest in MSFT rather than AAPL, for them I am laughing my ass off (literally - it fell off a few hours ago).

I wonder how much you have been laughing in the last ten years with MS stock going no where......

Fritzly said,

I wonder how much you have been laughing in the last ten years with MS stock going no where......

That is the point I am trying to make, I am not laughing at the people who are counting on their investments, MSFT nor APPL, I don't want to see any company or individual do bad. But the fan boys who were happy last week to see Microsoft stock stumble a little bit, who put their entire self-worth into Apple winning, towards them, I am happy. And apparently, since you are mocking my portfolio in MSFT, I suppose that you are one of those Apple fanboys that I am laughing at. So let me say his, over the past year, my MSFT stock is up about 8%, Apple has hit a 15 month low (but still up over where I bought)

SoylentG said,

That is the point I am trying to make, I am not laughing at the people who are counting on their investments, MSFT nor APPL, I don't want to see any company or individual do bad. But the fan boys who were happy last week to see Microsoft stock stumble a little bit, who put their entire self-worth into Apple winning, towards them, I am happy. And apparently, since you are mocking my portfolio in MSFT, I suppose that you are one of those Apple fanboys that I am laughing at. So let me say his, over the past year, my MSFT stock is up about 8%, Apple has hit a 15 month low (but still up over where I bought)


Not unexpectedly but you are wrong on all counts: I have traded MS, and other stocks as well since 1996. No I do not have Apple shares although I am monitoring the moment to buy some, probably within a month. Finally it is interesting as you quoted MS over last year ignoring that I mentioned the last ten years....

Fritzly said,

Not unexpectedly but you are wrong on all counts: I have traded MS, and other stocks as well since 1996. No I do not have Apple shares although I am monitoring the moment to buy some, probably within a month. Finally it is interesting as you quoted MS over last year ignoring that I mentioned the last ten years....

Typical, I am trying to defend Apple here, writing that it is not good to mock any company that is down like this, be it MSFT, APPL, or other, because the people that invested are hurt, and somehow I am wrong for doing it.

Fritzly said,

I wonder how much you have been laughing in the last ten years with MS stock going no where......

Why? MS has issued dividends, and some relatively large ones in the last 10 yrs... that is income not virtual value, you don't lose dividends unless you reinvested them.. Apple for the longest time didn't pay dividends out just to hoard money

SoylentG said,

It is not nice for the investors, those who were putting in money for their retirement, the Apple employees who received stock as part of their pay package, etc.

For the Apple fanboys who last week were laughing because Microsoft dropped 4% in one day, claiming that it was the end of Microsoft, for them I say "Nice!"

Why should I care about investors? Those that could afford to buy the stock are rich. I'm not. I don't care about moneybag stockholders.

The stock was over-valued. Apple was to greedy to split the stock. Everyone trashes Microsoft because their stock hovers at about $20 per share. What they aren't considering is MS split the stock 9 times to make more affordable so that middleclass people could also buy and not rich crackpots only.

Really shows who cares about people vs just money. I hope Apple's stock goes to zero.

TechieXP said,
Why should I care about investors? Those that could afford to buy the stock are rich. I'm not. I don't care about moneybag stockholders.

The stock was over-valued. Apple was to greedy to split the stock. Everyone trashes Microsoft because their stock hovers at about $20 per share. What they aren't considering is MS split the stock 9 times to make more affordable so that middleclass people could also buy and not rich crackpots only.

Really shows who cares about people vs just money. I hope Apple's stock goes to zero.

MS stock is around $30 and not $20......

neufuse said,

Why? MS has issued dividends, and some relatively large ones in the last 10 yrs... that is income not virtual value, you don't lose dividends unless you reinvested them.. Apple for the longest time didn't pay dividends out just to hoard money

The two things are unrelated; I buy an apartment and rent it; I get an income but at the same time I hope that its value will go up and does not remain flat. The stock market trading is based about growing value of shares not only dividend. If you base your investments only on the dividend you would be better off buying CDs or bonds and avoiding the risk. Unless of course you buy very profitability but very risky bonds.