Over the past few weeks, Apple, which is on and off the world’s most valued company, has been facing trouble at the stock market. These troubles were compounded when the company last month announced that it was looking at a less than optimum projection that was likely to see iPhone sales decline.
Apple stock marked a sharp decline of 2.5 percent today, continuing its 5-day losing streak. The company’s stock, which in early October was up by 40 percent over last year, has dropped until it stands 11 percent up as compared to last year. The stock has fallen by 11 percent over the last 5-days alone, erasing $107 Billion of stock value.
The effects of this slump are being felt by the wider tech economy as well. In fact, Apple’s whole supply chain is feeling the effects. Yesterday, we published an article on how the company’s Asian suppliers were all looking at losses on the stock market. There are also rumors that the Cupertino giant is in talks to pause work on an exclusive assembly line it was setting up for the iPhone XR, due to lessening demands.
A couple of weeks ago, Apple announced that it would no longer announce the number of devices it was selling, including iPhones, Apple Watches etc. This is thanks in part to lessening sales numbers: India for instance, is set to witness a decline in iPhone sale numbers in 4 years.
The company was quite candid when it said that it made this decision as it was planning to adjust the flat sales numbers by increasing average device price. Clearly, the strategy is not working out particularly well for the company, and it needs a quick pivot if it wants to maintain its leadership position in the market.