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.