In September 2012 Apple achieved a significant milestone in the company’s history; for the first time, Apple shares topped the magical $700 per share mark. In contrast to this heady achievement, Apple shares plunged below $400 a share in early trading today or a drop of 25 points.
Investors worried
The question that no one is really talking about in public, although whispered behind closed doors, is whether Apple can continue its product innovation without Steve Jobs at the helm of the company. And according to mutual and hedge fund managers, the answer seems to be “no” as they demonstrated by selling off their Apple shares late last year.
Market shifting
The popularity of Samsung’s Galaxy line of smartphones, tablets, and media players is a big factor in drawing some of the magic away from Apple’s products.
In a statement to the press last year regarding Samsung's $1.05 billion loss to Apple over alleged patent infringement of the iPhone design, the South Korean mobile phone company said that it would not use the courts as a means to further its wares, an obvious dig at Apple, but would fight back with innovation and better products:
"Today's verdict should not be viewed as a win for Apple, but as a loss for the American consumer. It will lead to fewer choices, less innovation and potentially higher prices. It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies.
“Consumers have the right to choices, and they know what they are buying when they purchase Samsung products.
"This is not the final word in this case or in battles being waged in courts and tribunals around the world, some of which have already rejected many of Apple's claims. Samsung will continue to innovate and offer choices for the consumer."
Not to worry
Not everyone is fretting about the downturn of Apple stocks. The Apple faithful still believe and will continue to buy new iPhones, iPads, and iPods from the company that Jobs built.
Some investors and industry watchers point to Apple’s cutback in iPhone 5 production as a sign that the company is losing ground, but this line of reasoning was refuted by some industry professionals.
Mark Moskowitz, a JP Morgan analyst, said that the concerns are unfounded and are an overreaction:
"We believe this news is not new, as we first discussed potential supply chain component cuts in our report on December 19. We believe the news is more noise, and we believe the stock reaction has been overdone."
Be that as it may, Wall Street has the final say, and regardless of what J.P. Morgan's take is on this, the majority of investors don’t feel as sanguine about Apple as some investment analysts do.
Via CNET
via Examiner National Edition Gadgets & Tech Channel Articles http://www.examiner.com/article/apple-stocks-drop-below-400-early-trading-investors-scramble-for-cover?cid=roadrunner