Why is Apple Crashing?

Shares of Apple closed down another 2.7% Friday to $106.03 — knocking the stock down 21% from its recent high of $134.54. The breathtaking decline not only puts Apple into a bear market - defined by a 20% drop — but has obliterated a staggering $160 billion in shareholder wealth from the top.

A drop of $160 billion is like a whole company (or even an industry)

AT&T Inc. Mkt cap $209.4 B
Verizon Communications Inc. Mkt cap $187.6 B
Las Vegas Sands Corp.Mkt cap $33.28 B
Wynn Resorts, Limited Mkt cap $6.528 B
MGM Resorts International Mkt cap $12.09 B

Lack of sales. But why. Has the quality gone
down or are people just not spending.

Apple sat on a 178 billion dollar cash hoard and didn't reinvest it in Capex. http://money.cnn.com/2015/01/28/investing/apple-cash-178-billion/index.html

In business, you are either growing or dying.

Quote: petroglyph

In business, you are either growing or dying.

There are lots of businesses that do neither, just
stay at the same level every year. Especially
locally. You can have a family business for
decades that, as long as you own the property
it's on, makes money every year.

Then that is growth. They are making enough to pay the utility's, tax's etc.

Quote: Evenbob

Has the quality gone down or are people just not spending.

Apple sells very expensive products when there are many much cheaper more pedestrian products available. The same could easily be said about ferrari.

Release date for Apple iphone
1st gen: June 29, 2007
3G: July 11, 2008
3GS: June 19, 2009

Based on the initial success of the iphone, Apple became a top 10 company for market capitalization in 4th quarter of 2009 as people rushed to invest in the corporation. Only 6 months later it seemed firmly in third place behind Exxon Mobil and PetroChina.

In less than two years, by the third quarter of 2011 it edged above Exxon by a mere 0.11% to be the largest corporation in the world. With only two exceptions it has held that position every quarter since then.

Tim Cook revealed at the Apple Watch conference on March 9, 2015, that Apple had sold a total of 700 million iPhones to date.

From 23 February - 20 July 2015 stock hit highest level, then dropped by 22% in a month.
By October 27, they reported sales of $233.7 billion for the previous year, and massive profits and the stock almost recovered completely, but this December has been bad.

Apple crashes into bear market: $160B gone! headline reads in USA today on December 18th.

Quote: Matt Krantz, USA TODAY

Troubling signs pointing to weakening demand for smartphones continues to dog the stock. Analysts are cutting growth expectations for the fourth quarter — and even the first quarter — as they incorporate weaker demand. Despite efforts to diversify away from the mature smartphone market — Apple still gets a vast majority of its revenue and profit from smartphones.

Most of the top 10 companies are from the USA, with two Chinese firms, PetroChina and 'Industrial and Commercial Bank of China' along with Swiss pharmaceutical giant Novartis. Novartis manufactures such drugs as clozapine (Clozaril), diclofenac (Voltaren), carbamazepine (Tegretol), valsartan (Diovan) and imatinib mesylate (Gleevec/Glivec).

Anyone interested should tune in to 60 Minutes tomorrow night because Tim Cook is being interviewed.

At some point they need another gotta-have-it product. I just switched to Android as the newer iPhones are just too damned costly for not delivering much more. If we are not there we will soon be at the point where most iPhone sales will be replacements, not new customers. Along with Google they are doing stupid experiments with making cars, a sure money-sink. Bottom line is the future is murky.

HP has world's thinnest laptop (10.4 mm whereas Apple MacBook is 13 mm)
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With a Core i7-6500U processor, 8GB of RAM and a decent 256GB SSD, the Spectre costs $1,249 in the US. A Core i5 version knocks the price down to $1,169. Whichever model you choose, just be ready to jump fully into the world of USB-C, the new multipurpose data, power and accessory connector. The Spectre has three USB-C ports along the back. All three can carry data or power, and the two center ones also act as Thunderbolt ports for high-speed data transfer.

So they have three ports instead of one for Apple.

What do you think? Will this give Apple a run for the money?

Quote: Pacomartin

Shares of Apple closed down another 2.7% Friday to $106.03

Hitting a low of $90 on May 12, 2016, Apple is back up to $108.

CNBC Michael Yoshikami (CEO and founder of Destination Wealth Management in Walnut Creek, California) points out that "the price makes no sense given that Apple has $250 billion of cash in the bank, a price to earnings ratio much lower than the market and a massive cash flow generation operation despite slowing phone sales."

He thinks that Tim Cook should get a little more of Tesla's moxie.