Wall Street and investors were not impressed with the iPhone 7 and Apple's shares have fallen 3% since its release. The stock is now down 15% year-on-year.
http://www.businessinsider.com/apple-stock-drops-after-iphone-7-2016-9?r=US&IR=T
My perspective:
Discuss.
http://www.businessinsider.com/apple-stock-drops-after-iphone-7-2016-9?r=US&IR=T
Wall Street didn't like Apple's big iPhone 7 event
Traders don't think the iPhone 7 will return Apple to growth.
Apple stock was down about 2.84% at market close on Thursday, the day after the company revealed its new iPhone models.
Apple shares closed at $105.52 as compared to $108.36 at close on Wednesday. At one point during the day, the stock dropped to $105.41.
Apple stock is down about 15% from its 52-week high at $123.82.
Apple announced several new products on Wednesday, including the iPhone 7, the iPhone 7 Plus, new Apple Watch models, and a set of wireless earbuds.
After two straight quarters of annual sales declines, Apple is hoping the new iPhone models can return Apple to year-over-year growth.
My perspective:
- Shares will fall another 10~15% until September 2017 when Apple probably will release a VR product.
- Most analysts predict pre-orders of the iPhone 7 will flat-line or fall below expectations
- Apple had the perfect opportunity to pounce on Samsung after they recalled the Galaxy Note 7s due to the Lithium battery issues. However the media is all reporting how disappointed they are with the iPhone 7, which almost completely erases Apple's advantage in this short time-framed opportunity.
- Apple's iPhone SE is popular in the BRICs, African and Southeast Asian nations, however they sell for much lower profit margins compared to the iPhone 6/7. And they also contribute to lower revenue
- Apple's "Airpods" are gimmicky and ultimately leads to poorer sound quality. Who thought they could fool customers?
Discuss.