Apple has fallen from its lofty number 1 position down a clear three places to the number 4 position in the stock tech industry for the first time in over 12 months. This drastic tumble follows a 3 month period ended September 2015 when investors sold a whopping $1.2 billion of Apple shares! This is troubling news for the tech stock company and is apparently a direct result of the poor sales performance of the company’s iPhone offering.
Despite the fact that iPhone sales were up by over 30% in the Chinese market, sales still did not meet the predictions of Wall Street for the sales of 48.72 million units. iPhone sales are not the only worry as iPad sales have also been sluggish, contributing further to loss of investor confidence in the organization.
At the close of day on Thursday, Apple’s stocks closed at $118.78, registering a mere 8% increase since the start of the year. Is this the fall of Apple? Competitor company, Microsoft, has seen a 12% increase in stock price over the past year. Other competitors such as IBM, Oracle and Intel stocks are down.
But it doesn’t seem to be all doom and gloom for Apple as Goldman Sachs on Wednesday put the stock on the buy list, predicting a stock price of $163 by year end. The rationale behind this positioning is the belief by Goldman Sachs that Apple stocks are undervalued and that it’s only a matter of time before the share price reflects the true value of the stock. As Apple becomes more of a service company versus a hardware company, it is expected that the stock price will increase. Only time will tell whether Apple will regain its position by year end.