Apple might look great in sales, but the stock of the company is giving Wall Street less hope that 2016 earnings will exceed their expectations. Even though the company sold 76 million units of the iPhone and 6 million Macbooks in the final quarter of 2015, the company’s stock is 29% down from its peak.
Apple Stock Goes Down 9% in the First Month of 2016
Just in January, the company’s stock is getting dangerously low. Investors are worried that Apple may not be able to maintain their magnanimous growth rate. The truth is smartphone sales overall are hitting a plateau since everyone who wants a smartphone probably already has one.
The Cupertino-based company relies almost entirely on keeping customers and convincing them to upgrade to the next iPhone or iPad in the series. 63% of the company’s revenue came from the iPhone, which is an increase from 2014, but it’s possible that it goes downhill from here.
Cupertino Could Be in Trouble
Apple’s suppliers have all quoted weak demand for the iPhone, declaring that the company has cut as much as 70% of the orders for the device’s components. Actually, general demand for the phone in Europe in America has decreased between 5% and 10%. Analysts are already expecting lower numbers for the first quarter of 2016 – but this would be the first time it has happened ever.
However, Apple has the power to make a hot comeback. The company has, after all, exceeded all of Wall Street’s expectations for 12 quarters. Even if sales do drop, the company will still keep a number two spot as the second biggest earner in American history and the second largest number of sales of smartphones any company has had in three months. We are talking about Apple, after all.
The Announcement of the 2016 Lineup Might Change Everything
The company is still growing, though not at the speed that it should. Sales for the iPad continue to go down, and the Apple Watch hasn’t broken enough ground (although it was the trendiest gadget last quarter). Apple is also putting a lot of work into software, partnering up with IBM to get Apple hardware in businesses and in cars. In about eight months, the newest batch of devices will be revealed. It’ll probably be business as usual for the company.
