Apple Drops Slowly
The Cupertino based mobile and computer manufacturer Apple Inc. did great business last year, but lately the stocks have disappointed this company and left the investigators struggling for an answer. When iPhone 5 was released, the company’s shares but today the share price has fallen by 10%. Apple’s shares hike every time a new innovation is announced. The outlook for the company is good but still the there is skepticism by the market regarding Apple. The following are 4 reasons that are considered for this skepticism.
1. Lack of Steve Jobs in the company
Last year after Steve Jobs passed away a big vacancy for the post of CEO of the company was caused that needed to be filled. The company’s major asset was lost, a man with great vision and innovative brain that led the company to the top position in the mobile world. The position was filled by Tim Cook, who did manage to carry the company on his shoulders but, yet Steve Jobs is Steve Jobs and nobody can replace this Maestro. Tim Cook perhaps qualified for the CEO post of the company but he cannot lead the company to the innovative and growth heights that Steve Jobs took Apple to during his period. This will surely have an effect on Apple Inc. regarding the internal clashes, lack of the true leader, innovation etc.
2. Tough competition from Rival Companies
In this present day, consumers are in constant search for something new and worth the buck they spend. One major problem with Apple is its Sky high prices. This is one thing that causes many customers to not choose Apple as they cannot afford it. So, they look for other Smartphones with great features but priced low. For example consumers are opting for Amazon’s Kindle Fire instead of iPad and Samsung Galaxy SIII instead of iPhone 5 as they are much cheaper.
However, Apple’s strength is it’s Brand name. May consumers buy Apple in spite of its high price because they believe it is the best. However the big question is how long Apple can manage with just the name. It has to think of something to face the competition from its rivals.
3. Lawsuits
Apple is the number one company to be involved in patent infringement lawsuits with many mobile companies. The most notorious one is against Samsung for the infringement of patent rights regarding the copy of design of its phones and tablets. The two rival companies are involved in patent rights in many countries. Apple is painted with the image that by filing patent lawsuits against its rivals, it wants to take over the market place so that it will have no competition and it can raise the prices. This is an image Apple must shed off soon or it will have an effect on its shares.
4. Labor Issues
In the last week of September issue with the labors arose in China at the Foxconn factory that produced iPhones in huge numbers. This had an effect on the market and on customers. This is not just one incident Apple had troubles with. In another incident 61 workers were injured in an iPad factory, Wintek factory employees were hospitalized due to exposure to poison. Many such problems have been troubling Apple from a long time now.
These are 4 reasons that have an effect on the Apple market. However they do not suggest that Apple’s growth will not be sustained.
