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Is Apple’s Dominance Coming to an End? Apple’s Share Price Falls to Lowest in Nearly a Year

I have recently pointed out in an article (“The Beginning of the End“) that Apple’s shares have been dropping during the past few months.

Apple, the world’s most valuable company, became definitively less valuable on Monday after news the global tech giant halved its orders for screens for the iPhone 5.

According to Japan’s Nikkei news service, Apple had originally ordered 65 million iPhone screens for the 2013 January-to-March quarter from its suppliers which include Japan’s Sharp Corp. and South Korea’s LG Display Co.

Apple’s share price plunged 3.57% to $501.75 — its lowest point in 11 months — continuing its slide from September 19 when the company’s share price hit an all-time high of $702.10. Investors holding 100 shares of the company on that day would have lost more than $20,000 after Monday’s close of trading.

Is Apple’s dominance coming to an end? The figures say YES.

In the global tablet market, IDC expects Apple will have maintained its number one position in 2012 with a 53.8% market share — but that is a fall from a 56.3% share in 2011. At the same time, Android’s market share is predicted to have grown from 39.8% in 2011 to 42.7% for 2012.

Apple’s reputation as a fast-growth company appears to be waning. Apple has missed earnings estimates in three of the past five calendar quarters, including the past two straight, says FactSet. And Apple might come up short on revenue forecasts on weak iPad demand, says Mizuho Securities analyst Abhe Lamba in a report to clients.

Apple’s woes come as the company has been facing increased competition from Samsung Electronics and other makers of smartphones that run Google’s Android operating system. Meanwhile, shares of Nokia, the Finnish maker of the Lumia handset that runs the Windows Phone operating system, have rocketed 17% this year.

 

About the author

Robson Hayashida

Robson Hayashida has over two decades of experience in the computer industry in product development, support, training, and e-marketing. Mr. Hayashida has been working on writing ColdFusion Web Application series, as well as multiple books on SQL, Regular Expressions, Java Server Pages, WAP, Windows development, and has recently being involved in multiple Meteor / MongoDB and Node.JS projects and more.