Apple’s stock is tanking and investors aren’t happy. Many U.S. stocks are dropping though, what makes Apple special? Analysts have predicted lower than average iPhone sales due to the high pricing of the iPhone XS, iPhone XS Max, and iPhone XR. Perhaps that’s why Apple is pushing harder than ever to market the price of the iPhone as lower than it actually is.
Otherwise, you’re still paying the full $749 for an iPhone XR or $999 for an iPhone XS. Apple wants you to forget that.
Apple’s Getting Desperate
What was Apple thinking? This reeks of desperation, and analysts have taken notice.
Plunging Stock Prices and Lousy Estimates
Ming-Chi Kuo doesn’t just make surprisingly accurate hardware predictions. He also has his fingers on Apple’s supply chain pulse. He’s cutting his estimates for iPhone shipments in 2019, both the iPhone XR and XS lines. In fact, increase demand for Apple’s legacy models is not enough to make up for the lack of interest in Apple’s latest iPhone models.
Apple has an expensive iPhone lineup. The improved camera and improved processor in the iPhone XS aren’t enough to convince people that a $1,000 phone is worth the price. Apple has a great phone lineup. If only they didn’t overvalue it before grossly cheapening their brand.
Apple’s stock has crossed well below its “death cross.” That means its 50 day rolling average is now lower than its 200 day rolling average. It’s typically the sign of a company in stark decline. While all American stocks are down thanks to Trump’s isolationist policies and a government shutdown, Apple’s stock is exceptionally bad right now, and was below its death cross before our most recent drop in stock prices due to the government shutdown.
But when it really comes down to it, there’s just one question we should be asking. Who hired the used car salesmen for Apple’s marketing?
Sources:
- Rebecca Ungarino, Markets Insider
- Ryan Vlastelica, Bloomberg