Why is the value of Apple shares falling?
Despite the existence of reasons for optimism, decrease of the market value of Apple Company disturbing not only investors, but also customers of apple technology. Nothing surprising, it’s not every day the capitalization of the company loses almost $180 billion. But, let’s not forget that not everything depends on the Apple.
The current fluctuations on the stock exchange are associated mostly with the China. The fact that in recent years the government of the country methodically reducing the rate of national currency, the yuan, thus increasing the uncertainty in the market. In addition, China’s economic growth fall short of optimistic expectations, consumption rates are decreasing, which is naturally disturbing the majority of global investors. For example, the Dow Jones and Nasdaq came back to the 2014 values, and Apple itself has lost as much as $178 billion during the wave of massive sales of shares by holder, therefore became logically cheaper.
However, there is no point considering that problem as a failure of Apple. Yes, the Chinese market is a priority for the Cupertino (many profit records of the last quarter are associated with successful sales in China) and the company’s position on it is still strong. And enough to open new stores and to negotiate with the operators on the official iPhone sales, the latest generation of which was a great success in China. Sales are slowed slightly, but on the eve of the release of new models it is quite logical.
Secondly, as already mentioned above, the decline observed almost everywhere, but due to the very high costs and excessive expectations, Apple stands out from the others. For example, giants such as Proctor & Gamble, IBM, and even the Intel, also lost more than 20% of its value, but no excess profits, or some recent growth miracles even these successful companies couldn’t show. In Apple case, investors have become accustomed to constant rise in the cost of shares, which cannot and should not be infinite, and the company sales records began to be perceived as a norm. Nevertheless, there are common to all objective factors on the market and from their influence is not insured, even the most solid player. It happened the other day, though even in this situation Apple remains one of the most successful participants of the stock exchange in the long term.
In conclusion, it should be mentioned about another thing that speaks in favor of Apple, namely its own policies regarding shares. The Corporation has repurchased shares in the amount of 90 billion dollars and it is only in the last quarter. As previously mentioned, until the spring of 2017, this figure will increase to 200 billion – or more than twice. This means that Cupertino has a powerful tool to control inflation, and investors can have reliable guarantees against market shocks. In general, I can conclude that there are no reasons to worry, for example, according to the famous publication Fortune, the current “sale” – a very good chance to buy Apple’s shares.