Investors are very bearish towards the company's stock as rumors suggest that it might be cutting down on the production of its hardware.
Apple Inc has yet again experienced an uninvited dip in the stock market which the investors were clearly not expecting at this point in time. The software company has been ensuring the investing party of the progress it has been making in the industry and it still showing massive signs of growth which are enough to make anyone bullish about where the giant seems to be headed.
In the last reported fiscal quarter, the iPhone 6 Plus manufacturers reported record sales of the smart phone in the Chinese region which boosted the total sales figures attained by the giant in the same quarter. Apple Watch sales, however, were not as great as expected and the strength of earnings came majorly from colossal sales of the new generation iPhone.
As for the Apple share price, the fluctuation on the index starting from July to September showed that despite the strength of the guidance coming from the management’s side, the investors might not be as satisfied as the company wants them to be. In August, shares fell to a value of $100 and only managed to linger around $110 in September, which the analysts think was due to the fear of the shareholders regarding the ultimate dead end the giant might face once it is done enjoying extremely high sales of its products. However, the software company reported a massive growth of 38% in the earnings per share for the last quarter of 2015, which was around 4% more than what the equity companies in the market expected out of it.
According to rumors, Apple has also cut down on its components orders recently, which shows that the giant is currently facing a massive decline in the demand for its products. Even though the Silicon Valley based company has been giving its investors positive guidance for the next quarter as well, the dreading feeling that they are feeling regarding the declining sales of iPhone and Apple Watch is now evident in their behavior towards the stock. The tech giant reported a total figure of 231 million iPhones that were sold during the whole year 2015, which analysts believe cannot be matched unless the company comes up with something interesting to update the smart phone with.
The guidance for the Q1 2015 remains positive, but the recent rumors have made the stock price decline by around 2.92% which analysts think does not make sense, as they seem to completely rely on the next quarter guidance provided by the giant. This is mainly because the losses that the software company faces are not as big as the positives it has been reporting for the past couple of years.
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