If you managed to take a look at the stock market today, you might have noticed that Apple is not in such a good spot anymore. Apple’s stock price fell by 4 percent today, going down to about $114. This is the lowest stock price that the company has registered in more than six months.
Shares also dropped by around 14 percent just before the earnings report in late July. This is making us wonder how a successful company like Apple could have gone so far astray from its original path. But we are, in fact, talking about Apple: a company that follows its own rules, creates its own world and the laws of the market do not always apply.
The company’s decline started after the analyst predictions turned out to be not so accurate for the iPhone in the last quarter: while the expectation was to have around 48 to 50 million phones sold, only 47.5 million units actually made it off the shelves. It was not exactly bad, but not accurate either.
Then they announced that they were not going to share how many Watches were sold and that raised speculation that the Watch was not as much of a success as it was hoped to be. Moreover, during an investor conference call a company subsidiary mentioned that Apple did not reach the two million Watch sale per month that they had planned. The target was not expected to be reached in the third quarter either.
The company has yet to address this fact, but we all know that Apple always plays hard. They always tell customers to look at the bigger picture and that, in the end, no company knows for sure how many products they are going to sell at what time.
“This isn’t a matter of not being transparent, but a matter of not giving our competition insight.”
This is what Tim Cook, Apple CEO, declared during the earnings call when it was decided that the numbers for Apple Watches were not going to be shared with the public. It is a “play hard” move, but it is also a good move.
Even though Apple is looking a little bit rusty at the moment, this is also one of the most flexible companies on the market, able to make a comeback from situations like this one. Its popularity seems to be growing in China and with the possible reveal of its new iPhone this fall, Apple might see the number one spot very soon.
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