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How Far Can the Mighty Apple Fall?
TIME ^ | 04/18/2013 | By Sam Gustin

Posted on 04/18/2013 12:51:30 PM PDT by SeekAndFind

Apple may be the world’s most celebrated electronics company, but its formerly high-flying stock price has plummeted to Earth over the past six months, declining 40% since last September. On Wednesday, that trend continued when Apple shares tumbled 5.5%, briefly pulling company shares below $400 for the first time since December 2011, and wiping out more than $20 billion in shareholder value.

Wednesday’s decline was apparently triggered by a disappointing sales forecast from one of the company’s key suppliers, which fueled fears of weakening demand for Apple’s signature iPhone and iPad products — and added to growing concern about a weakening global electronics market. Apple’s dramatic stock slide has cost the company the title of the world’s largest company by market capitalization, a distinction that once again belongs to energy giant Exxon Mobil.

The question now is whether Apple shares are likely to keep falling. Apple, which reports earnings results next Tuesday, is now trading at slightly more than nine times earnings making it extremely cheap relative to the broader market. Even so, many analysts are cautioning that the stock could fall further still — with some pulling out the classic warning that investors shouldn’t attempt to “catch a falling knife.” Or, as Auerbach Grayson analyst Richard Ross told Forbes: “Until this stock can show me something, there’s no reason to be a hero.”

Apple had already been facing growing competition from the likes of Google and South Korean electronics titan Samsung, weighing down Apple’s stock price in recent months as investors wait for the company’s next breakthrough product. Then, on Tuesday, Cirrus Logic, which supplies Apple with audio chips for the iPhone and iPad, warned of “a decreased forecast for a high-volume product” from one specific customer.

(Excerpt) Read more at business.time.com ...


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: apple; stocks

1 posted on 04/18/2013 12:51:30 PM PDT by SeekAndFind
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To: SeekAndFind

Without Jobs, all the way.


2 posted on 04/18/2013 12:52:15 PM PDT by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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Every dog has its day, but so the same dog will have its fall.


3 posted on 04/18/2013 12:57:21 PM PDT by Arkansas Toothpick
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To: SeekAndFind

It is not Apple’s job to try and match the hype and madness of Wall Street investors and hedge funds. How can they possibly control that?

By all accounts, they are still a strong company with great products, making a lot of money.


4 posted on 04/18/2013 12:58:11 PM PDT by PGR88
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To: PGR88

I’d say the hype came from Apple itself, always has, and there is nothing wrong with that. The problem is that they are not innovators anymore, more like follow the new leader Samsung and then come out with a “NEW’ model to slightly one up some feature. There are just too many good, equivalent or better products out there for a better price. And while the majority of people seem to Microsoft haters, the segment of Apple haters has been growing for some time.


5 posted on 04/18/2013 1:03:42 PM PDT by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: PGR88
"By all accounts, they are still a strong company with great products, making a lot of money."

Not relevant. Apple has fallen out of fashion, and therefore out of favor, so it is to be shunned.

6 posted on 04/18/2013 1:08:07 PM PDT by YHAOS
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To: Mastador1
And while the majority of people seem to Microsoft haters, the segment of Apple haters has been growing for some time.

Apple used to have a sense of humor, used to be cool.

Now they're as full of themselves as IBM once was.

Nothing wrong with that, but sooner or later you've got to take a bite out of the Reality Sandwich.

7 posted on 04/18/2013 1:10:21 PM PDT by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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To: SeekAndFind

I have heard it said” The Apple doesn’t fall far from the tree.”


8 posted on 04/18/2013 1:20:03 PM PDT by ThomasThomas (Normal isn't normal anymore.)
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To: SeekAndFind; abb; weegee; Swordmaker
AAPL stock price performance (green) vs. Time Warner (purple) since 1993


9 posted on 04/18/2013 1:21:17 PM PDT by martin_fierro (< |:)~)
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To: SeekAndFind

How far CAN it fall? To zero, of course, like any stock. How far WILL it fall? That’s a proper question.


10 posted on 04/18/2013 1:22:39 PM PDT by jdsteel (Give me freedom, not more government.)
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To: Mastador1
Android tablets sure have taken a bite out of Apple's market share.
If anything ? it's people yelling that it's not fair that there is competition against Apple.
If another product can be produced that is just as good and cheaper ? why not ?
Only the strong suvive in a environment of competition, that's how the system in the business world works.

11 posted on 04/18/2013 1:23:54 PM PDT by American Constitutionalist
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To: SeekAndFind

The question is, Why didn’t I buy when Jobs came back, or at least after the iPhone introduction?


12 posted on 04/18/2013 1:27:12 PM PDT by St_Thomas_Aquinas
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To: Steely Tom
Apple used to have a sense of humor, used to be cool.

Now they're as full of themselves as IBM once was.

Nothing wrong with that, but sooner or later you've got to take a bite out of the Reality Sandwich.

And not from the Reality Distortion Field Sandwich Shop.

13 posted on 04/18/2013 1:32:38 PM PDT by Leroy S. Mort
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To: Steely Tom
Without Jobs, all the way.

Maybe; though I think that they really made two big mistakes -- the nice thing about Apples was that they were different than the rest (I'm not arguing good or bad here) -- first was when they dropped the Motorola for the x86, second was when they became "just another *nix".

Both of these can be justified, true, but there are underlying mentalities, philosophies that both of these tap into. In the case of the x86 the underlying philosophy is that everything can be extended (look at the instruction set) and mistakes in not-quite-fundamental design can be glossed over by a later extensions. The case of Linux though is even deeper: these are the philosophies of C/C++, things like "everything is a file", or the "little tools able to be piped together" which doesn't work in-practice, or more "make it more complex". I also despise that this gives ammunition to my CS peers who, having a little knowledge, say crap like "in order to program an OD you need to use C [or assembly]" having no idea that there's a lot of OSes that don't; moving the Apple away from assembly/Pascal makes it more difficult to give them a good counterexample because they'll point to popularity (or the move itself as proof of the languages being unsuitable).

Now, C++ is admittedly starting to get away from some of it's C/Unix heritage by taking into consideration not-uncommon problems [which are becoming more common] like parallel-programming... there's a huge bit of irony there though: C++ will be a huge collection of mismashed ideas/designs compared to Ada (which was designed with such things in mind).

14 posted on 04/18/2013 1:36:55 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: Mastador1
The problem is that they are not innovators anymore, more like follow the new leader

*nod* - I agree; they've lost a sense of "we do it this way" to a sort of "we'll do whatever's popular" (which worked out ok when they were popular).

15 posted on 04/18/2013 1:40:17 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: Leroy S. Mort
And not from the Reality Distortion Field Sandwich Shop.

Wasn't there a joke/saying about Jobs having a Reality Distortion Field?

16 posted on 04/18/2013 1:41:07 PM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: SeekAndFind

All the way down. This was always the problem with being “hip”, eventually fashion changes, even if your stuff was good you get abandoned. Much better to be a product everybody uses but won’t admit, uncool but popular has much longer term profitability.


17 posted on 04/18/2013 1:42:43 PM PDT by discostu (Not just another moon faced assassin of joy.)
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To: American Constitutionalist

See that’s why it’s funny, when it comes to Microsoft everybody jumps on the band wagon and yell screw you! Considering Apple is guilty of many of the same things Microsoft is defiled for, most people almost worship them like a cult.


18 posted on 04/18/2013 2:12:01 PM PDT by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: SeekAndFind

Apple had been over-priced by speculators just like gold. Big deal.


19 posted on 04/18/2013 4:20:59 PM PDT by BfloGuy (The economy is not a pie, but a bakery.)
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To: SeekAndFind

Who wants to buy all of that expensive Icrap anyway?


20 posted on 04/18/2013 4:32:57 PM PDT by Thunder90 (All posts soley represent my own opinion.)
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To: Mastador1
I only buy what I can afford for the features I want... I am not loyal to any brand for the most part unless it was like Craftsman before Craftsman went some Chinese made tools.
Yes folks, Some of Craftsman tools now are made in China.
Come to find out that Cobalt tools are just as good as Craftsman now.
21 posted on 04/18/2013 5:55:47 PM PDT by American Constitutionalist
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To: Thunder90
Apple's stuff is not just overly priced, but ? most of it is proprietary.
Android is kicking the stuffings out of Apple in that regard.
People don't understand, that ? Linix is in a lot of things, cell phones, TVs, BlueRay Players.
That's where Linux is kicking the stuffings out of both Microsoft's Windows and Apple's Macintosh.

Once they get Linux to the point where it's ready for primetime no one will want Windows or a Mac again.

Linux is open source and in some cases ? it's free.
22 posted on 04/18/2013 6:06:19 PM PDT by American Constitutionalist
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To: Mastador1
When I said that some people are saying it's not fair that Apple is being beaten by the competition are those liberals who worship Apple and the cult behind it.
Liberals in general do not like competition unless it benefits only them.
23 posted on 04/18/2013 6:09:30 PM PDT by American Constitutionalist
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To: American Constitutionalist

Actually if you compare Craftsman and Husky side by side they look almost identical, so Kobalt is your only other reasonably priced alternative if you want to avoid Craftsman.


24 posted on 04/18/2013 6:24:53 PM PDT by Mastador1 (I'll take a bad dog over a good politician any day!)
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To: SeekAndFind
At first I thought it was about NYC, but it’s just about Apple Computers. LOL
25 posted on 04/18/2013 9:14:39 PM PDT by MasterGunner01
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To: American Constitutionalist
Android is kicking the stuffings out of Apple in that regard.
People don't understand, that ? Linix is in a lot of things, cell phones, TVs, BlueRay Players.
That's where Linux is kicking the stuffings out of both Microsoft's Windows and Apple's Macintosh.

What? Android is kicking what stuffing out of Apple? That just doesn't agree with the facts. Apple OWNS 72% of ALL mobile phone profits. . . not Android. The Street is reporting today that iPhone sales at Verizon are UP 25% year-over-year compared to same quarter last year on sales of FOUR MILLION iPhones in the quarter, and that is just one carrier in the US. In fact, 55% of all phones sold by Verizon last quarter were Apple iPhones! That's really getting the stuffing kicked. . . but it's not Apple getting kicked.

Now for Linux. . . Windows PCs have DROPPED market share BY awhopping 14% but Apple Macs, during the same quarter, INCREASED market share by 7%! It was reported last week that Apple rakes in 45% of ALL profits of all PC sales. That's another drubbing that just isn't happening. Strange that the stock market just ignore this, isn't it? Linux? It has never reached better than about 1.6% of the market. . . But it's proponents keep saying "Once they get Linux to the point where it's ready for primetime no one will want Windows or a Mac again" over and over, again and again, for the last ten years or so. They say that doing the same thing, over and over, expecting a different outcome, is a good definition of insanity. . . Linux is a good Geek's OS, but it will never be mainstream. No one is going to push it unless there is a profit to be made.

Yes, Linux is in a lot of things. . . but does Apple WANT or need to be in those things? Nope.

26 posted on 04/18/2013 11:12:52 PM PDT by Swordmaker (This tag line is a Microsoft insult free zone... but if the insults to Mac users continue...)
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