Why is Apple Crashing?

Quote: Pacomartin

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.

Quote: AZDuffman

Perhaps Apple is just being priced rationally and Tesla is not? The cash hoard is a bad thing as much as a good one these days.

Quote: Pacomartin

China is Apple’s second-largest market and a source of massive potential growth. The company’s revenue there grew 14% in the 4th quarter 2015, and a staggering 99% in the quarter before that. For 1st quarter 2016 however, Apple’s growth in China was negative, dropping 26%.

Quote: AZDuffman

Anything about China is a caution sign to me. We don't know how much is fake over there. OTOH the people with money are more consumerish than the average American. Years back I read how people changed cell phones every six months to get the new features. Phone market has changed but they will probably still be consumerish.

Quote: Time

There are two clear reasons for declining iPhone sales. First, wireless carriers are killing off their hardware subsidies. That means many people are feeling the full cost of their smartphones for the first time, leading some to keep their devices for longer periods of time without upgrading. Apple is trying to fight this effect with a kind of leasing program, but how successful that effort has been is unclear. (This problem is affecting all smartphone makers, not just Apple.)

Second, the iPhone 6 and 6 Plus set a high bar for iPhone sales — shoppers simply went nuts for their larger-than-ever form factors. But making iPhones a little bigger is a trick Apple can only pull off once. (The iPhone 6s and 6s Plus, which feature more minor upgrades, have had trouble matching their predecessors’ success.) Whether Apple’s next iPhone can match the magic of the 6 remains to be seen.

Quote: AZDuffman

Asian cultures seem to be more about branding than the west.

Quote: terapined

I've never ever been an apple person ever
Stuff seemed over priced when other cheaper products get the job done
Computers - always windows based
Personal music player - sony hi-md
Phone - Samsung

Quote: Pacomartin

You see that in Hawaii. The resorts that market to Asians tend to be ostentatious in design, while many resorts that market to mainland Americans are more subtle.