For over a decade Apple has continuously produced a phone product that consumers flocked to buy. With every new launch came enormous anticipation and sales which also produced exceptional gains in stock prices for the shareholders. For the first time in years, Apple stock has dropped almost 10% and this decline is due to the lack of interest or purchasing of the ever-popular iPhone.
The recent blame has been on the lack of sales in China, because of the recent trade issues with China and the current President of the United States. Although a decline in sales in China is obviously track able, declines in iPhone sales can be seen throughout the United States.
Although Apple stock is being affected greatly, it seems that smart phone sales in general have declined. This could be due to the fact that upgrades in software for these type phones can give the consumer the same technology without costing them hundreds of dollars to get a new phone. Other reasons could be due to market saturation by not just Apple but the competitors as well. Most people who want a smart phone, own one already and economically it does not always make sense to upgrade to the newer and flashier version.
Apple as a company has made some poor decisions that have gotten out to the consumers which could erode consumer confidence and cause a decline in sales. Apple has admitted to slowing down older versions of the iPhone and even though they said it was to assist in helping with battery issues, consumers may have started to lose faith in the product itself. Apple also chose to get rid of the earphone jack. This, for too many consumers, was the proverbial straw that broke the camel’s back. Some felt as if Apple did this to force the purchase of new wireless earphones and felt that Apple was no longer the product that cared about the consumer.
Apple stock is dropping, and it cannot be blamed on just one issue, but rest assured they are working on creating something better than what we have seen in the past and as a company, will most likely bounce back with new technology that once again shocks the world.