It was destined, bound to happen, was en route, or whatever other synonym you want to append, investors are devastated of what Apple has shown them, and what the Cupertino giant has forecasted to show at the later half of the year. And as a result of that devastation, $40 Billion of Appleās market cap is gone. Straight.
Reasons are multitude for the more than 8% declineĀ in Apple shares. Biggest of them is investor fear, that the company might have just reached the peak of its iPhone sales (I personally disagree, read more to know why). iPad and Mac are already not the most selling devices. And to top it all, Appleās latest iPhone SE launch has failed to inspire customers.
Such massive drops arenāt a usual with a company of Appleās size. Last one was in 2013, when company stocks fell by as much as 10%, due to the uncertainty that surrounded the company. However, it still showed decent progress, unlike this time, when the company has recorded its first ever revenue drop (and a massive one at that) for the first time in 13 years.
This quarter was Appleās first year-over-year sales dip when it comes to iPhone sales.
So now what ? Well, the company has already forecasted an even doomed upcoming quarter. Ā Hereās what the Cupertino giant thinks itāll achieve :
- revenue between $41 billion and $43 billion
- gross margin between 37.5 percent and 38 percent
- operating expenses between $6 billion and $6.1 billion
- other income/(expense) of $300 million
- tax rate of 25.5 percent
Personally though, I feel Appleās biggest and yet the most untapped advantage lies in India, the southern neighbour of its once strongest market ā China ā which hasĀ been a significant reason behind this quarterās dim results.
Comprising of more young population than almost anywhere in the world (and slated to grow even further) and an ever-rising middle class, Apple has some serious market out here ā if ofcourse, tapped intelligently. And that intelligence would require more investment into the country, so as to ultimately start producing those phones in India, making them far cheaper and affordable than what theyāre currently being sold at.
As of now, Appleās shares have hit a 64 day low! Yup.
The Tech Portal is published by Blue Box Media Private Limited. Our investors have no influence over our reporting. Read our full Ownership and Funding Disclosure ā
Founder of the The Tech Portal. Now a consulting editor for the platform. Deepanshu has advised and worked with numerous early/mid-stage startups in diversified roles so far. You can click on his LinkedIn profile and drop in a message to get in touch.
