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

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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47 Comments

1. submar

Posts: 713; Member since: Sep 19, 2014

Apple is dying

2. XperiaFanZone

Posts: 2278; Member since: Sep 21, 2012

Expect responses full of numbers.

3. NFSHesham

Posts: 297; Member since: Feb 04, 2014

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

5. Scott93274

Posts: 6040; Member since: Aug 06, 2013

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

17. Mxyzptlk unregistered

Cough Moto X cough

27. Scott93274

Posts: 6040; Member since: Aug 06, 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

38. Mxyzptlk unregistered

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.

39. Scott93274

Posts: 6040; Member since: Aug 06, 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.

4. Raito

Posts: 81; Member since: Aug 15, 2014

In your dreams,

32. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

No. Investors are stupid.

6. Hallyu

Posts: 790; Member since: Jul 21, 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

7. AlikMalix unregistered

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!

34. TechieXP1969

Posts: 14967; Member since: Sep 25, 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.

40. TheOriginal

Posts: 49; Member since: Oct 28, 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.

42. foul.Shabazz

Posts: 4; Member since: Jan 13, 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.

43. coldspring22

Posts: 349; Member since: Feb 28, 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!

8. EC112987

Posts: 1216; Member since: Nov 10, 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!!

44. coldspring22

Posts: 349; Member since: Feb 28, 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.

9. Sidewinder

Posts: 515; Member since: Jan 15, 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.

35. TechieXP1969

Posts: 14967; Member since: Sep 25, 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.

45. coldspring22

Posts: 349; Member since: Feb 28, 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.

10. byazatt

Posts: 316; Member since: Oct 26, 2012

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

12. keithtae

Posts: 564; Member since: Mar 25, 2015

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

13. Rock_Hardwood

Posts: 117; Member since: May 11, 2015

maybe because your a "thrifty" androboy

14. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

not all Apple haters are android fanboys

26. Commentator

Posts: 3723; Member since: Aug 16, 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!)

36. TechieXP1969

Posts: 14967; Member since: Sep 25, 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?

11. DnB925Art

Posts: 1168; Member since: May 23, 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.

16. Iodine

Posts: 1493; Member since: Jun 19, 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.

46. coldspring22

Posts: 349; Member since: Feb 28, 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.

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