Is Apple starting to lose its bite?

LONDON. December 18. KAZINFORM Apple's share price has fallen more than 25% since its record high set three months ago -- no less than five analysts have lowered their price targets for the U.S. technology giant in the past few days.
None
None

To make matters worse for Apple, Android smartphones continue to reign supreme in global market share : for every one such device running on Apple's iOS, about seven smartphones running Android's operating system are computing away, Kazinform refers to CNN.

Is Apple losing its bite? In the short-term, investors and analysts seem to think so. But in the medium-term, they believe milestones exist that can put the shine back on Apple's share price and image.

Apples do fall

On September 19, Apple's share price closed at a historic high of $702.10, exactly one week after the debut of the iPhone 5. But as the freshness of the device's latest iteration wore off, so did the bullishness for Apple's stock. On December 17, it fell below the psychological $500-mark, to slide below $497 in pre-market trading . The company's share price quickly climbed above that threshold that day but still sits at lows not seen since mid-February.

The dive in Apple's share price has also been attributed to a cut in orders from its parts suppliers. One fear is that Apple may have produced too many iPhone 5s  in the current quarter and it may now need to scale back manufacturing in 2013. Analysts from UBS, Citibank, Mizuho, Canaccord and Pacific Crest all cut their price targets  on Apple leading to a further drop in the Cupertino-based company's share price.

Read more

Currently reading