Putting the blame on a weakened economy in China for low sales of the iPhone, Apple CEO, Tim Cook, sought to explain their huge drop in stock value this week, and because of this, Apple has stopped trading until they can figure out what’s going on. That’s not a good thing.
Although it’s clear the company hasn’t done great in sales over the last quarter or two, and Cook expects the next quarter results to be more of the same. Hard to believe that it was only last August when Apple became the first company to be worth a trillion dollars. Sadly after losing 10% in value, they have dropped to the #4 top company in terms of value. Even then, Apple is expecting a 38% profit margin on $84 Billion in revenue. So the loss is largely theoretical.
You can’t only blame China. People just aren’t buying new phones. They have chosen to update their batteries and keep their existing iPhones. That’s because with a price tag of over $1,000, and without a massive improvement in performance, the market is just responding negatively to that $1,000 price tag.