The shares of Apple (AAPL) dropped again for more than 6.4% on Wednesday and the company lost $35 billion in market value. Apple opened down 3.2% on Thursday and had fallen below $530 in the earlier trading.
For business traders, this news indicates that Apple has traversed the death cross meaning Apple’s long-term moving average has broken above its short-term support level. The death cross typically indicates that a bear market for Apple is approaching.
Reasons for the fast loss are quite plentiful and varied.
One is that Google’s Android gadgets are continuing to gain ground, especially in China where the iPhone is struggling. International Data Corp estimated that Apple’s tablet market share will decrease from 56.3% to 53.8% in 2012 while market share for Android products will increase to 42.7% from 39.8%
Another reason for the selloff: Apple is not paying a special dividend before capital gains taxes are raised in 2013.
On the other hand, a report from Piper Jaffray analyst, Gene Munster, considers four factors which are responsible for the decline in the Apple Inc. (NASDAQ:AAPL) shares. The report says “We believe the two primary reasons for the sell-off are misinterpreted Digitimes story and a technical breakdown in shares”. The other two factors being an increase in margin requirements and a partnership between China Mobile and Nokia Corporation (NYSE:NOK).
Technical analysts might be bearish on Apple but there is certainly room for a steep recovery. Apple CEO Tim Cook is currently on a crisis management tour and will be featured in an exclusive interview on NBC’s Rock Center tonight with Brian Williams. Apple has also announced that it will resume some production of its Mac computers in the United States and will spend $100 million in domestic manufacturing in 2013.
Whether or not you’re convinced the era of Apple is officially over, the tech giant is still up 33% this year. Maybe the recent weakness signals a temporary sale for investors.
(Ref: Yahoo Finance)
You all are very early with this articles. I read them since stock start to go down from 700$ , months ago. Write them again when apple stock is 480$
If all the media and experts tell you every single day ‘Stock is down, so buy’ and it lasts for month, be sure that out there are some big fishes that want to sell you.
Guess who sell at 700 to 550 just when iPhone5 and mini iPad arrived? Who pumped the stock up to sky telling you every day, that is coming The Magic, but it was just a good phone and mediocre mini iPad.
Right! Not the fateful zombies. But the same big fishes that made the Balloon-Pyramid called Apple Stock. And they still have more to sell you, until the price of Apple stock get normal