APPLE PROFITS NOSEDIVE AND SHARES DROP 40 PERCENT – How far has the apple fallen from the tree? Once the darling of Tech Stock Apple is now hemorrhaging cash, profits take a real beating and 40% of its share value has been wiped out leaving investors questioning the leadership of Apple CEO Tim Cook.
The battle began as Samsung muscled in on the Smartphone market where Apple, with its iPhone, was the dominant force.
As Samsung developed its offering with new features, larger screens and all at a competitive price, Apple started to see a rapid decline in the sale of its iPhone.
Since the loss of its found and CEO Steve Jobs it appeared that Tim Cook was the right man to succeed but now questions are being ask if Tim Cook has the innovative imitative to continue at the helm.
“Our teams are hard at work on some amazing new hardware, software, and services and we are very excited about the products in our pipeline.” Apple CEO Tim Cook
For more than a decade Apple watched sales of its iPhone and iPad soar and with little competition to stand in its way it quickly became the largest and most profitable company in the world.
Now with Samsung offering the Galaxy Smartphone and Tablet this has made a serious impact on Apple profits and fears are that unless Apple can really pull out the stops profits will continue to fall and its share price plummet.
On the face of thing it might be difficult to understand why Apple is having such a hard time; after all in first quarter of 2013 it sold 37.4 million smartphones, up from last year of 35.1 million. However when compared to Samsung’s sales of 65 million smartphones it is easy to see just how much of the market Apple has lost to its competitor.
Fears are that with the introduction of the new iPhone 5 series and Samsung due to release the new Galaxy S4 this could further dent Apple sales and profits.
Profits at Apple have fallen by around 18% to just £6.3 billion which was contributable to it having to cut prices in order to remain competitive against Samsung.
It appears that investors are selling their stock over fears that Apple is simply not developing innovative products at affordable prices that completes measurably with its rivals. Since September 2012 Apple stock has dropped by 40% and there is yet any sign of a recovery.
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