Yesterday, the share price of the Apple company reached its lowest level in the last 5 months. The reason is the constant shortage of iPhone5.
Terry Gou, the head of Foxconn Technology Group, which is engaged in the assembly of new products, said yesterday that they cannot accelerate production and thereby meet the high demand for devices. In particular, due to stricter requirements for the quality of the iPhone 5 produced after numerous complaints from users.
Due to the shortage, many potential Apple users are switching to the company’s competitors’ devices. Such a “turn” has a painful effect on the expectations of investors and holders of securities and, as a result, on the value of shares.
But that’s not the only reason. Apple shares also fell due to analysts’ concerns. They were confused by the quiet release of the iPad 4 and the release of the ambiguous, seriously inferior in characteristics to Android devices iPad mini.
Recall that on the day of the presentation of the iPhone 5, Apple shares reached a record value of $705.07 apiece. Yesterday, their price fell by 20% to $555.75. Thus, Apple’s capitalization in total decreased by $130 billion (Apple’s total market value is $525 billion).