By Tony Investo
Apple’s stock took a severe hit recently. The biggest hit came to their iPhone product, which had a decline of over 11% over the year. Shares in Apple have dropped by 33% since October. Tim Cook (Apple CEO) is blaming it on tariffs that are harming the US-China financial relationship. The truth is that the smartphone market is already saturated, the iPhone has gotten way too expensive, and their updates aren’t novel enough to justify the price. The global economy as a whole has also slowed down, which doesn’t help demand for luxury goods, especially as iPhones are lasting longer with their relatively new battery replacement service. Even Netflix has terminating their business relationship.
Apple needs to diversify, or they need to reduce the price of their phones. Or both! The biggest decrease for this fortune 500 company occurred in China, whereas previously they had almost doubled their sales in the prior two quarters. Investors should not be surprised to find when the second fiscal quarter ends, Apple is still on the decline, according to analysis predictions. If you are looking to make a solid decision, whether it is time to sell or invest in Apple, take time to set up an appointment and talk to a local representative stock broker.
Despite all the current events, Apple shows some promising increments in the future with their Apple Music and iCloud products. Both products showed an increased by over 20% this past year for the company. Even though Apple seems to be hitting a current rough patch, it is still the first company to have ever been valued at one point over $1 trillion in August 2018. Times might seem trying this quarter for the tech giant, so they still have time to bounce back.