Friday ended its worst week on the stock market since 2013 as worries festered about a slowdown in iPhone sales and after influential shareholder Carl Icahn revealed he sold his entire stake.
Shares of Apple have dropped 11 percent in the past five sessions. What is worrying Wall Street is that all those funds which have shedloads of Apple shares because they believed they were always going to rise are suffering.
Confidence in the Cupertino, California company has been shaken since posting its first-ever quarterly decline in iPhone sales and first revenue drop in 13 years. Of course that confidence has been misplaced for the last year, it is not as if they did not have any warning.
The Tame Apple press is claiming that the stock’s relatively low valuation as a key reason to hold onto the stock. Icahn however thinks that Apple has a lot lower to fall mostly because the outfit is going to get a kicking from Chinese authorities. Apple has been increasingly dependent on China lately because the smartphone industry is fairly saturated in the US.
Revenues from China slumped 26 percent during the March quarter and its iBooks Stores and iTunes Movie service in China were shut down last week after the introduction of new regulations on online publishing.
Over the weekend the Tame Apple Press has been trying to say that shares will pick up when Apple releases a new iPhone 7. While it might sell, word on the street is that it will not have any new technology onboard and will be pretty much an iPhone 6. Apple seems to think it is a good idea to release a phone with all the new technology next year.
With shareholders jumpy it puts a lot of pressure on the iPhone 7, which even Apple sees as a holding product.