Apple's shares tumble below $500 amidst continued investor concern

By on January 15, 2013, 1:00 PM

There have been very few times in the last several years that owning Apple stock hasn’t been a financially rewarding endeavor. Those who were lucky enough to buy in before 2010 have enjoyed a tremendous return on their investment but as the saying goes, what goes up must come down.

Apple stock value topped $700 per share briefly in September 2012 as investors and consumers alike were anxiously awaiting the announcement and arrival of the iPhone 5. Yet despite strong sales of the latest generation handset, a revised full-sized iPad and a new iPad mini, Apple’s shares are down 22 percent over the past three months - sitting at just $489.29 as of writing.

The Wall Street Journal published a report over the weekend claiming that Apple is reducing orders for parts to build the iPhone. Some sources told the publication that Cupertino was slashing some orders in half for the current quarter.

Since then, multiple analysts have weighed in on the situation with many coming to the conclusion that a reduction in component orders likely means that Apple has improved yields. This means that the company is more efficient when building phones and not having to toss out as many faulty parts.

Apple’s stock outlook for the next 12 months is still very solid. Shaw Wu from Sterne Agee believes that Apple is a “buy” and that share value could hit $840 by this time next year. Baird analyst William Power is hopeful as well, noting that Cupertino could reach $750 per share over the next 12 months.

If these analysts are right, perhaps investors should view the latest stock slump as a sale and invest heavily while prices are low.




User Comments: 15

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4 people like this | m4a4 m4a4 said:

Will I soon see the great fall of the most overrated fashion tech company? Naw, too many zombie followers for that to happen.

I bet they could mess up big on an important feature and still be called amazing by those sheeple... oh, wait...

Sniped_Ash said:

Wow I had no idea that Apple's stock was valued so high. Shouldn't they be LONG overdue for a stock split?

Vrmithrax Vrmithrax, TechSpot Paladin, said:

Stock prices that high are unsustainable for specialized company with very little diversity like Apple. The only way they'll hit and maintain those numbers is if they continually innovate new technologies, rather than just rely on yearly refresh iterations. They are awash in a sea of competitors and similar products, where it is easy to get lost in the shuffle if you can't keep flashing huge "look at me!" beacons to keep people interested...

Plus, those constant Apple commercials are becoming so very, very irritating! Heh.

Guest said:

@m4a4 You see phones as fashion accessories? you are one weird dude

3 people like this | Lionvibez said:

@m4a4 You see phones as fashion accessories? you are one weird dude

What are you talking about.

In his post its the apple sheep that see them as fashion accessories. You need to work on your reading comprehension bro!

3 people like this | MilwaukeeMike said:

I think the latest round of new products really did them in. The iPhone 5 'upgrades' were a 4 inch screen, 4G LTE and a thinner body. Nothing to write home about when compared to the competition. Same goes for the iPad mini. No retina screen even, and a higher than expected price. Even the iPad 4 isn't a significant improvement.

But look at the interation before that. The 4S brought us Siri... something that no one else had. The iPad 3 gave us the retina screen, which no one else had.

They're not pushing the bar forward anymore, they're just throwing stuff in their products that should have already been there. Sure the iphone 5 and ipad 4 tear up the benchmarks, but that's not noticed by many.

2 people like this | captainawesome captainawesome said:

I think the latest round of new products really did them in. The iPhone 5 'upgrades' were a 4 inch screen, 4G LTE and a thinner body. Nothing to write home about when compared to the competition. Same goes for the iPad mini. No retina screen even, and a higher than expected price. Even the iPad 4 isn't a significant improvement.

But look at the interation before that. The 4S brought us Siri... something that no one else had. The iPad 3 gave us the retina screen, which no one else had.

They're not pushing the bar forward anymore, they're just throwing stuff in their products that should have already been there. Sure the iphone 5 and ipad 4 tear up the benchmarks, but that's not noticed by many.

yeah we all know why the iPad mini doesn't have a Retina display - so that they have a feature to add for their next refresh.

Apple are gonna need to double their R&D budget to stay relevant in the long run. I find it disgusting that they can spend ~4 times their R&D on litigation.

Guest said:

@Lionvibez no, he said it directly, here is the exact quote:

Quote: "m4a4 said: Will I soon see the great fall of the most overrated fashion tech company?

He is calling it an overrated fashion.

1 person liked this | St1ckM4n St1ckM4n said:

@Lionvibez no, he said it directly, here is the exact quote:

Quote: "m4a4 said: Will I soon see the great fall of the most overrated fashion tech company?

He is calling it an overrated fashion.

..Is it not?

Anyway, Apple improving yields? That's a load of BS. I seem to remember an article a while ago saying that the manufacturing process is extremely difficult for the iPhone 5 and a large percentage of parts don't pass the test.

Guest said:

I have an iPhone, its stays in my pocket unless I a need it. to all the ****** who think it as a fashion accessory grow up and get out of your teenage mindset. Its a phone, plain and simple.

Skidmarksdeluxe Skidmarksdeluxe said:

Damn. Didn't you people know hiring an iJudge & organizing iWitnesses costs a lot of money & takes up a lot of time.

PC nerd PC nerd said:

I have an iPhone, its stays in my pocket unless I a need it. to all the ****** who think it as a fashion accessory grow up and get out of your teenage mindset. Its a phone, plain and simple.

People see iPhones as fashion accessories. Especially girls.

Get a phone that works and isn't locked down tighter than Fort Knox.

Guest said:

@PC nerd

I gave android a shot. 10 days ago went out and "downgraded" to a Galaxy 2S X with ICS from an old iPhone 4. Love the screen size for the first few days but after the ten days usage I just HATED it. Reminds me of the Linux (android) VS Windows (IOS).

Here is what I found with Android ICS

1) Clumbersome and confusing menu system

2) Apps were noticeably (not horrible ) lagging and crashing on Driod

3) The screen at angles other then straight on was horrible (phone dependent I know)

4) Shorter batter life even with a way larger capacity battery (phone dependent I know)

5) Horrible predictive text, I would almost want to give up texting if I had to use droid and the other apps you can download did improve it a little but still sucked.

6) Terrible google+, skype, yahoo video chats. Compared to facetime, all were very terrible.

Like stated above, Andriod (linux) is just confusing for most and only the "geeks" would want to mess with all the possible settings and go through the hassle of rooting it or installing custom rom's etc. Where IOS (windows) just works out of the box. Why would you want to mess with a phone constantly, what a waste of time for most.

Aside from the bigger screen, there is nothing I liked about the Android phone and will never go back even though the 3.5" screen on the iPhone is pathetically small. I do hope that apple sees people want a bigger screen phone and not what is in the Iphone 5, I mean BIG screen and not just tall and narrow. 4.5" seems perfect to me.

Guest said:

Oh I forgot to mention that just yesterday I "upgraded" from my brand new Galaxy 2sx to my old 3 year old iPhone 4 again. :)

Skidmarksdeluxe Skidmarksdeluxe said:

That's exactly what Apple want's you to do... Waste your money on them.

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