Apple Shares Fall, iPhone Sales Are Up
Shareholders fear that Apple is reaching its peak, leaving Apple shares with a huge decline in value.
That’s the problem with overly high expectations: there comes a time when we need to return to Earth. Apple shareholders had to experience something similar when they looked at the 35% increase in iPhone sales. According to The Wall Street Journal, analysts predicted a much higher rate of income, although the present numbers are quite impressive: an increase in profits by 38%, making Apple as wealthy as USD 203 billion.
Fans of iPhone gamingwould be gaping at these colossal levels of profit, but Apple shareholders are unimpressed and agitated. As The Wall Street Journal reports, they are scared that the iPhones are slowly reaching the pinnacle of their worth. What’s worse, Apple relies very heavily of the sales of iPhones, since they are the company’s most sold product.
Apple shares drop by 8%
The Wall Street Journal states that “the iPhone is Apple’s most important product, accounting for nearly two-thirds of Apple’s revenue.” The attitude of investors changed; they have started to believe that soon, the number of iPhones sold will be maxed out and there won’t be more room for improvement.
To this, Tim Cook said the following: “I refuse to accept that type of thinking. I don’t see the ceiling being very close.” Usually, as The Wall Street Journal reports, the third fiscal quarter is always lower because autumn is coming and buyers want to wait for the newest model to be released and buy that.
People simply want to play on gambling apps on the newest iPhone, which is understandable. Apple also reasoned with the fact that with a smaller inventory, they sold more iPhones than they manufactured. Even so, Apple shares will soon rise again, especially with the new iPhones hitting the market towards the end of the year. In a world where people still buy iPhones despite their high prices (and in spite of the existence of an armada of much cheaper smart phones,) Apple investors really have nothing to be worried about.