On September 19, the price of Apple’s stock reached $702, bringing the company’s value to $645 billion, and with the arrival of the iPhone 5 to the market and the new iMac, then the iPad mini and the iPad 4, Apple shares began to collapse rapidly until yesterday it reached $417, which means a loss The company has more than a quarter of a trillion dollars in 7 months, a figure that exceeds the largest Arab budget - Saudi Arabia -. Why is Apple's market value collapsing despite its production of new devices? Will it continue uninterrupted?
Whether you agree with Apple or disagree, but you acknowledge that Apple is different from any company in the field of technology, so the value of the company is affected by several factors other than sales and profits, and these factors include:
ambiguous future:
There are schools that sell to technical companies, the market school, which is followed by “Dell” in computers, and “Samsung and Nokia” in phones. This school says to study the market and then provide it with its needs. Small, big, slim, thick, high price, low phone, against water and dust, etc. etc... That is, what the user asks for is whatever he finds. As for Apple, it follows a philosophy specific to Steve Jobs, which is that it does not care about the mood swings of the customer in the market and works to create a new product and present it in the market and make the user say, “How did I live before this product?” And this is what I did with the iPhone, iPad and other products, but 3 years have passed since the last innovation of the company “the iPad” and it is currently developing devices and there is a difference between innovation and development, so the investor feels that Apple has lost a point of superiority and distinction from other companies, even if Apple produced the smart watch. All other companies are now working on smart watches and may produce them before Apple, which is what made Apple - in the eyes of the investor - become like other companies and here you will not be able to compete with them.
flounder products:
Apple is known to be a company that provides high-quality, accurate products, and the product does not come out until you are sure of its quality; But last year we were surprised by the weak iOS 6 system, and failed maps, we found many people complaining that they got an iPhone with manufacturing defects, the new iMac was delayed in reaching the market until Tim Cook admitted that it should have been delayed, updates to the system have obvious flaws Apple is forced to release a quick update, as happened with 6.1.1 for the iPhone 4S, and the company offers “fake” updates, meaning that it does not find anything new in the update. These things clearly indicate that Apple has an internal management problem and a clear confusion and loss of the famous accuracy factor, and this is not a secret, as Apple has made several adjustments in the company’s leadership, and recently rumors circulate that Tim Cook, CEO of Apple, may be fired soon due to the deterioration of the company.
Weak market growth
Months ago, a statistical study showed that Apple sells 6% of the phones in the world, but it gets 77% of the profits due to the huge profit margin in Apple devices, and recent statistics showed a huge spread of smart phones and a significant growth in the shares of competing companies, compared to the first quarter of this year Last year, it appears that Samsung increased its share in the smart phone market by 4.2%, while Apple increased by 0.2%, which indicates that the phone market is growing, but Apple's share remains constant without an increase, which is a negative indicator for investors, especially because the iPhone represents 53% of Apple's income. It is noteworthy that Apple announced last week a decline in profits for the first time in 10 years.
Worst money management company
As we mentioned in the previous paragraph that Apple has a huge profit margin and is considered the best company in the world in attracting money, but it is the worst in its investment; According to Apple, the profit margin is currently down to 37%, but Apple puts $145 billion in banks untapped in investments - England has reserves of $103 billion and America 146 billion - and Apple may get 1-2% interest on this money, but it doesn't compare. profit in investing. In the business world, the capital cycle is very important, and leaving money without investment is a failure. Apple knows how to bring money, but you do not know what to do with it after! It does not do like Microsoft, which acquires giant companies like Skype for $8.5 billion and plans to lend Dell $2 billion, nor Google, which acquires a startup company almost every month, nor does it do like Samsung, which opens dozens of factories with the money it gets. Apple takes the money and puts it in the bank like an incapable of investment and that's a disaster in the business world.
Apple's awakening
My friend, the Apple-loving reader, may feel that it is the end or get angry with what we have mentioned, but this is not what we mean; Apple is not a small company, but we are trying to analyze the data to predict the future, as we did a year ago in an article “Beware, Apple, to leave me behind your accomplishmentsAlso an article.Nokia: A History Lesson for Apple“Apple’s management knows the problem better than us and is seeking to solve it, so it has stopped issuing any new devices or updates to the old ones until it solves the problem of confusion and may combine advantages to provide a big surprise, and Apple’s huge liquidity may be useful in huge acquisitions, it suffices to know that the net profit Apple in two months is enough to buy BlackBerry (net profit only, not sales), maybe Apple will blow a surprise that makes us all re-account again.
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