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Apple shares tumble to 15-month low as investors grow concerned over iPhone sales performance

Posted: , by Mihai A.

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Apple shares tumble to 15-month low as investors grow concerned over iPhone sales performance
Apple shares plunged more than 4% today - or $4.25 - to $96.45. This is the first time in more than a year that Apple's stock price falls below the $100 mark, and the lowest price for an Apple share since October 16, 2014, when the stock closed at $96.26.

Looking at the share price evolution, it's easy to note a link between the negative performance of Apple shares over the past month and investor concerns over reports of lackluster sales with the iPhone 6s series. The most recent - and likely the most credible of these reports - arrived just a couple of days ago when the Nikkei Asian Review claimed that Apple has cut back production by about 30% compared to the initial production goals.

In what was probably an attempt to ease concerns, Apple announced today that the App Store experienced record-breaking sales during the two weeks leading to the New Year's Day. In this time period, customers spent more than $1.1 billion inside the App Store. Unfortunately for Apple investors, however, it looks like these sales numbers were not enough to turn the ship around.

Apple's first-quarter earnings call is scheduled for January 27. On that date, the manufacturer will officially reveal how many iPhone 6s and 6s Plus units it has sold during the December quarter. While the company is expected to announce year-on-year growth for the December quarter, bearish analysts claim this could have been the last quarter of growth for the iPhone maker. 

Looking into the future, multiple analysts have recently claimed that iPhone sales are headed towards YoY decline during the March quarter, which would be a premiere event for the Cupertino tech giant. Some of the setbacks that Apple's iPhone series is currently experiencing are a saturation of the global smartphone market, local currency depreciation in China, as well as the rising popularity of the mid-range smartphone. 

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posted on 07 Jan 2016, 23:37 4

1. submar (Posts: 462; Member since: 19 Sep 2014)


Apple is dying

posted on 07 Jan 2016, 23:44 2

2. XperiaFanZone (Posts: 2113; Member since: 21 Sep 2012)


Expect responses full of numbers.

posted on 07 Jan 2016, 23:44 1

3. NFSHesham (Posts: 269; Member since: 04 Feb 2014)


Too early , Plus if they really suffer they'll have no problem doing midrangers

posted on 07 Jan 2016, 23:55 3

5. Scott93274 (Posts: 4615; Member since: 06 Aug 2013)


True, but the mid ranger always has a premium price.

posted on 08 Jan 2016, 02:36

17. Mxyzptlk (Posts: 12999; Member since: 21 Apr 2012)


Cough Moto X cough

posted on 08 Jan 2016, 07:07 1

27. Scott93274 (Posts: 4615; Member since: 06 Aug 2013)


Umm..... that is absolutely bulls**t and you know it. The Moto X is this year's best value for money phone, meaning you get the most for what you spend on it compared to all other devices. Why do you always insist on starting arguments you cannot win?

http://www.phonearena.com/news/PhoneArena-Awards-2015-Best-value-for-money-phone_id76626

posted on 08 Jan 2016, 16:57

38. Mxyzptlk (Posts: 12999; Member since: 21 Apr 2012)


Best value doesn't stop it from being a midranger. Especially compared to the powerhouse that is the Nexus 6P. Continue to shed those salty tears because you know I'm right and you're just butthurt.

posted on 08 Jan 2016, 17:39

39. Scott93274 (Posts: 4615; Member since: 06 Aug 2013)


But I said that Apple makes mid range phones at PREMIUM PRICES, to which you replied "Moto X", which we can argue mid range or not all day long, but it's NOT premium price so your argument is flawed and invalid.

Once again, you fail.

posted on 07 Jan 2016, 23:51 3

4. Raito (Posts: 58; Member since: 15 Aug 2014)


In your dreams,

posted on 08 Jan 2016, 14:22

32. TechieXP1969 (limited) (Posts: 10115; Member since: 25 Sep 2013)


No. Investors are stupid.

posted on 08 Jan 2016, 00:01 11

6. Hallyu (Posts: 403; Member since: 21 Jul 2015)


Yeah, it's about time for iboys to wake up and stop being the victims of this horribly smiling clown. To be honest, I don't see anything breakthrough coming from this company. The only notable forms that Apple stands for are:
1. Symbol status
2. Patents troll
3. Monopoly

posted on 08 Jan 2016, 00:12 3

7. AlikMalix (Posts: 5870; Member since: 16 Jul 2014)


Really excited about this... been waiting for Apple to feel some heat for a long time... Samsung is doing great recovering from their nose dive trend... Apple's turn!

posted on 08 Jan 2016, 14:30

34. TechieXP1969 (limited) (Posts: 10115; Member since: 25 Sep 2013)


WEhat nose dive? Not making as much money isn't equal to not making any money.

It is very hard in a segment where you actually have competition, namely Samsung has several Android OEM's to compete against vs Apple who really has no direct competition because no one else has iOS.

Samsung is Apple nearest indirect competitor. They compete in the same space, but the result is not the same customer.

Samsung has real competition and can't afford to rest on their laurels when you have other brands who use the same OS you do.

The iPhone has remain virtually unchanged since 2007. Today's iPhone doesn't do anything I can't do on my 3GS. It only has a nicer display and its larger in size.

if you compare the original Galaxy S to today's Galaxy S, it is significantly better. better design, better materials, more features and yes better displays, cameras and size. But at least it offers more than just that.

The iPhone offers the same stuff for the most part. The OS has gotten sloppy while Android has gotten better.

$649 vs a Galaxy S at $599. Look how much difference you get in benefits do to real competition. Yet the S costs more to make.

People are waking up even if you all don't realize it. The iPhone needs to offer more. Just bumping up the speed, or RAM size, or even the cameras and display resolution isnt enough. It need real useful features. Not Force Touch BS we had since the Blackberry Storm.

posted on 08 Jan 2016, 23:58

40. TheOriginal (Posts: 49; Member since: 28 Oct 2015)


saying that samsung is not in competition with apple is extremely ignorant, consumers switch all the time.

Just answer this question: If Iphones didnt exist what type of phones would they buy?

I hate apple and the isheep attitude but if company a takes customers from company b and company a takes customers from company b that is the definition of competition in the marketplace.

I also disagree with the statements on iphones not changing, just bc the degree of change is not as great does not mean that the change doesnt exist.

posted on 13 Jan 2016, 20:05

42. foul.Shabazz (Posts: 4; Member since: 13 Jan 2016)


Offer more like what... Unnecessary, gimicky features that are cool to show off but not really necessary. Android users always seem to think that they add so much more w/newer models. They don't. Android does the same thing as every other vendor. They up the specs of the previous model. Samsung does the same exact thing as Apple which is up the RAM, sharpen the screen resolution, feature improvements, stretch the screen out (which Android can't take credit for that. HTC started the bigger sized screen on a smartphone which was Windows Professional 6.5 based), faster processors etc, etc. There is no drastic change from a Galaxy S3 to a S6 outside of the above mentioned improvements. Its the same philosophy from LG to Samsung to Nokia to Apple & so on. TouchWiz isn't revolutionary on the Note 5 over the Note 4. If you don't like iOS just flat out say you don't like iOS & you prefer Android but to hide your embellishments behind a biased opinion is a little immature. And obviously you've never carried a Blackberry Storm b/c the pressure touch feature on 6s is not even in the same vicinity as what Surepress offered on Blackberry.

posted on 15 Jan 2016, 17:24

43. coldspring22 (Posts: 314; Member since: 28 Feb 2015)


Instead of comparing iphone with android flagships, how about comparing $700 iphone with $100 phones like Redmi 3 or Lenovo lemon 3? $100 phones were junk even last year, but Xiaomi and Lenovo changed that over night with Redmi 3 and Lemon 3. Got great lcd screen? Check!, Got premium metal build case in gold color? Check! Got fast 64 bit cpu with 2GB of ram? Check! Got SD card slot? Check! (only for Redmi and Lenovo)
Got good camera? Check! Got huge battery that last more than a day? Check! (only for Redmi 3). Who needs flagships or even mid-rangers when you have phones like Redmi 3 and Lemon 3? Last year, the news was cheap Android phones are getting good. This year, even cheapest android phoens are getting good!

posted on 08 Jan 2016, 00:25 1

8. EC112987 (Posts: 777; Member since: 10 Nov 2014)


Don't want any company to go under especially apple...that being said I'm glad this is happening maybe they'll finally kick it up a notch and make a monster device. Still loving my 6splus btw. As to the comment about a midrange Apple phone I believe it would be great. I take the 5c for example got the phone for my daughter at a cheaper price and it pretty much does everything my plus does. So before I get any crap from anyone I'm also rocking an edge plus. I want all these companies to prosper!!

posted on 15 Jan 2016, 17:34

44. coldspring22 (Posts: 314; Member since: 28 Feb 2015)


Sorry Android army will not take any prisoners! That said, Apple should be able to hole up in a corner castle and stay alive for good long while.

posted on 08 Jan 2016, 00:43

9. Sidewinder (Posts: 429; Member since: 15 Jan 2015)


I think this is all for the better of the consumers. Apple will finally start taking into consideration what the people wants instead of just pleasing their investors.

posted on 08 Jan 2016, 14:34

35. TechieXP1969 (limited) (Posts: 10115; Member since: 25 Sep 2013)


Look at all of Apple's products, how many have ever been about what users want? NONE!!!!!!!!!!!!!

You think they are going to change?

Apple's marketing is built solely on the fact, they aren't like everyone else.

The Mac is a PC. Apple says its not. The iPhone is a smartphone, but Apple says its not. The iPad is just a tablet, Apple says its not.

Appl;e can't afford to listen to their customers because that would mean being liek everyone else and thus they will lose their competitive edge because the fact is, it woudl wake everyone up and they will see Apple isnt better than anyone else and will stop paying for their crap.

After all remember this fact - It's not better because it costs more, it just costs more to fix when it breaks.

posted on 15 Jan 2016, 17:44

45. coldspring22 (Posts: 314; Member since: 28 Feb 2015)


What if what masses of people want is cheap iphone that still works like a charm? Apple had 7 years plus to produce cheap entry level iphones for masses that "just works", but they never bothered. So what make you think they will change their attitude now? Apple's target audience has always been well heeled affluent yuppies and folks with even higher income and wealth who can afford expensive goods, and that will never change.

posted on 08 Jan 2016, 01:02 5

10. byazatt (Posts: 269; Member since: 26 Oct 2012)


I just don't know why I feel good about this.

posted on 08 Jan 2016, 01:57 3

12. keithtae (Posts: 435; Member since: 25 Mar 2015)


Im sorry, but I know why I feel good about this. :)

posted on 08 Jan 2016, 01:57

13. Rock_Hardwood (Posts: 81; Member since: 11 May 2015)


maybe because your a "thrifty" androboy

posted on 08 Jan 2016, 02:00 2

14. NoToFanboys (Posts: 1558; Member since: 03 Oct 2015)


not all Apple haters are android fanboys

posted on 08 Jan 2016, 06:48 1

26. Commentator (Posts: 3686; Member since: 16 Aug 2011)


I'd rather be an fanboy of anything than a hater of anything (when it comes to meaningless things like this, at least. Of course there are things I hate in this world, just not smartphone-related. Smartphones are cool!)

posted on 08 Jan 2016, 14:35

36. TechieXP1969 (limited) (Posts: 10115; Member since: 25 Sep 2013)


The definition of a fanboi here is a hater, if you arent a fanboi of the same stuff. Right? Can't you see that?

posted on 08 Jan 2016, 01:26 1

11. DnB925Art (Posts: 1011; Member since: 23 May 2013)


Apple has plenty of cash. If they wanted to, they can easily prop up APPL share price by stock buyback. In the long term though, they can't be heavily dependent on the iPhone. Unlike Samsung which invests and makes just about everything (from phones to TVs and even to building skyscrapers and ships), if iPhone sales start going down over time, it'll hurt Apple. They don't sell enough Macs, Apple TVs, Apple Watches or iPads to balance out declining iPhone sales.

posted on 08 Jan 2016, 02:24 4

16. Iodine (Posts: 1331; Member since: 19 Jun 2014)


Apple makes mountains of money, and their stocks are terribly underwauled.

If you were a company what would you do ? I would buy my own super cheap stock to keep it away from dubious speculation, didn't you ?

Apple invested/will invest like a hundred billion for buying itself off, for less than 100 dollars it's a steal NOT to make a buyback now.

Considering iPhone sales even if they have sold 50 millions, it would still be the best selling phone, making the most profit in the industry, funding next round of investment. But it's not enough for analysts - only thing they want to see is growth which will lead to crisis in the end as nothing can hold up to that condition forever.

And yeah iPhone is a huge bussiness, but even without it Apple still got the most profitable computers, tablets, digital store, smartwatches bussineses and even Apple TV makes billions. By itself it would keep Apple the most profitable company on the planet, but we aren't talking about total collapse of iPhone, but only some dozen percent YoY drop.

Look samsung mobile business literally collapsed - from running up aggainst Apple level profit, went down like a rock in two years, thanks to the iPhone. And it was the most profitable, both you and analysts don't see that as an issue just because they have given away few millions phones more than last year.

No analyst talks about how all phone makers lose money/break even and how it could be a grave issue, yet if iPhone profit drops by a 0,5% it's the end of the world for Apple.

posted on 15 Jan 2016, 17:51

46. coldspring22 (Posts: 314; Member since: 28 Feb 2015)


It's all about long term trends, not just 0.5% drop in one quarter. It's easy to come up with reasons why iphone will sell increasingly poorly in next few years, and continue to give ground to Android in both market share and mind share. Is that healthy for any company to be on losing streak? Even if Apple stock dropped another 50%, Apple will still be a huge company by valuation. So nobody is saying Apple is going away soon, it's just that trend for next few years doesn't look good for Apple, unless it can launch another monster hit like iphone soon.

posted on 08 Jan 2016, 02:10 1

15. Rock_Hardwood (Posts: 81; Member since: 11 May 2015)


If you cant afford a few hundred a year for a nice iphone you can just get a free flip phone from a prepaid carrier. I will continue to upgrade every year until the lousy service at apple store drives me away. The kids they are hiring these days are useless and think they are so cool. You knw apple will just come out with blowout figrues like always.

posted on 08 Jan 2016, 03:18 2

23. ibend (Posts: 4602; Member since: 30 Sep 2014)


whats wrong with iPhone sales performance? they break record for first week sales ever they sell well at black friday and holiday season, if that all just apple's lie? lol..
its sure easy for them to make fake sales news, but they cant lie about those red number

posted on 08 Jan 2016, 10:13 1

29. j2001m (Posts: 2942; Member since: 28 Apr 2014)


Why it looked good on paper, the 1st week sales where crap as this year they included China, unlike last year when they did not, if they included the China sales in last years 1st week, then this year 1st week they be down big time over 2014 iPhone 6 sales numbers and I mean big time

posted on 08 Jan 2016, 14:23 1

33. tbomb92 (Posts: 5; Member since: 09 Jul 2010)


the smartphone market is also not growing like it used to anymore and with Apple relying so much on the iphone, it's scary for wall street to see that happen. Along side that, you have Samsung making devices like the Edge and LG making devices with awesome cameras like the G4. Then you have hipster culture becoming more prominent who would want to step away from the mainstream iphone. A lot of signs are slowly pointing away from Apple and that's why there's the decline.

posted on 08 Jan 2016, 03:30 1

24. twens (Posts: 978; Member since: 25 Feb 2012)


I don't have complains about my 6s plus besides my muddy looking camera and front facing camera. There is no life in the pictures iPhones take lately. The competition has just improved in camera especially Samsung to the point I don't feel proud taking pictures with my 6s plus anymore. If only it had a very sharp camera it would have been a perfect phone for me.

posted on 08 Jan 2016, 09:54 1

28. tokuzumi (Posts: 961; Member since: 27 Aug 2009)


"Plunged". 4%....wow. Now it's back up to 97.XX, so it is only down 3%. Apparently removing the headphone jack is all that was needed to restore faith in the company.

posted on 08 Jan 2016, 12:17 1

30. ameran (Posts: 282; Member since: 04 Dec 2013)


We have seen in the history that even greatest empires break down and disappear. Apple can't stay on top for ever either. I am not saying, this is happening right now, but you never know when it comes.

posted on 15 Jan 2016, 18:09

47. coldspring22 (Posts: 314; Member since: 28 Feb 2015)


Yes you hit the nail on the head. Apple is in fact just like an empire. With emperor (Tim Cook) commanding all things Apple. Only problem with empire/ emperor system is that command structure is SPOF (single point of failure). So dumb decisions from Apple HQ have no counters at all other than possible replacement of emperor after horses have bolted from the barn. On Android side is much different story - Samsung can screw up, and it dosen't matter much as long as other Android OEMs can step up. Google is closest thing to SPOF in Android platform, but even google can be replaced if necessary, as Android oems have ability to adopt another fork of Android like Cyanogenmod. So Android platform is much more resilient than Apple ios/iphone and is likely to stay relevant much longer.

posted on 08 Jan 2016, 14:22

31. TechieXP1969 (limited) (Posts: 10115; Member since: 25 Sep 2013)


Why does this matter. The phones are still selling. Just because they were expecting a ceryain sales number, doesn't mean they will get it.

Apple isn't going to sell 70M phones every quarter they just aren't. This is why Apple's fiscal year starts the last quarter of the year. They know this is the only quarter where they will make the most sales because of Black Friday and Christmas.

This is why other OEM's have lackluster sales in the 4th quarter. In the case of Samsung for example, the phones they make have already been on sales for 3 quarters and since a new phone is coming right after the holidays, most people aren't goign to buy the old phone when the new one is 3 months away until they see it. Plus, people spend less money on such items during the rest of the year as they save to buy such for the holiday season.

Which si why EVERY OEM should move to a similar sales cycle.

Remember, even video games release cycles were near the holiday season when they cost the most and then after the prices drop $100.

Investers always pull back, when they know they arent going to make the money they thought they were. This has no effect whatsoever on the actual sales.

If the investors expected 50M sales and they only got 48M, then they pull back investments. So what they are goign to get a few $100,000 less. They're just stupid and this isn't news.

posted on 09 Jan 2016, 00:02

41. TheOriginal (Posts: 49; Member since: 28 Oct 2015)


competition is good, if this continues enough then one of 2 things will happen, theyll lower their prices or they will "innovate" more. i think it will be the latter but hey oneplus, motorola, and all the other manufacturers are coming out with excellent midrangers... who knows.

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