Business: After 2.2% on Tuesday, Apple’s stock plunged more than 5.5% on Wednesday on Wall Street. Investors doubt the strategy, especially in emerging countries.
break between the stock market is Apple appears to be increasing. Before the announcement of its new products, investors had already severely punished action giant with a course that has happened in a year from 700 to 500 dollars. Competitive pressure forces.
markets then expected technological or marketing break with a double objective: to maintain positions in the high-end, generating volumes, particularly in emerging countries, all without compromising on margins too But
ads apple was not convinced, far from it. After -2.2% on Tuesday, Apple’s stock plunged 5.42% on Wednesday on Wall Street, largely from below $ 500.
While markets are not always best placed to judge the relevance of a strategy, you can give three reasons for this market scathing punishment:
-An iPhone 5s that aligns without creating the breakdown
Apple’s strategy, however, is known: a new model is always declined once. Decline, this means in most cases, to align with the competition. Apple has made its fastest iPhone upscale, more autonomous, more powerful. He improved the photo part. And innovated with the fingerprint reader.
But is it enough today at a time when competition in the upscale intensifies? Samsung is not the only competitor to be reckoned with LG and Sony have doubled or tripled their sales in Europe and even Nokia.
iPhone 5s could also emerge as THE ultimate payment terminal with Touch ID, but do not support NFC, these opportunities are reduced.
“Apple needs to show in the coming months she has other product lines out that can begin to compensate for the slowdown in growth and falling margins on the iPhone and iPad” said Jan Dawson, an analyst at Ovum Research.
Credit Suisse analysts wonder if Apple “is still an innovative company.” “Over the last 12 to 18 months, we were disappointed by the pace of innovation” business they write. The latest “is not likely to upset the market.”“In the long term Apple will perhaps develop new products such as a watch or TV, but for now assess the impact These products are difficult to model because they could not be launched before few years, “they add.
A-5c iPhone too expensive
betting markets on all of the low cost to generate volumes. Apple still has not formalized this intention. The firm instead chose to create a new terminal, instead of lowering the price of the former. because this is ultimately a 5c iPhone iPhone 5 dressed.
preferred preserved its margins by offering two models with prices close enough to maintain at all costs its premium positioning. Preserving margins is certainly commendable for investors but the risk of cannibalization is great. This would lower the average price of devices and therefore margins.
“This pricing strategy shows that Apple believes that its pool of potential customers for the high-end Apple is still very important. would really low cost, the day he will have exhausted its possibilities of extension,” says Ovum .
-The missed target Chinese
This is a critical issue for Apple to improve its position in this huge market (where it holds only 5%) dominated by arch-entry and mid-range Android. But with iPhone 5c to 4,500 yuan (550 euros), it will be complicated. Especially since no agreement has been signed with China Mobile, the operator with 700 million subscribers.
Moreover, subsidies are not strong in this country and even $ 99 with a two-year contract, the bill is far too high for a Chinese consumer. It is therefore not clear how Apple will increase its market share in the Middle Kingdom.In conclusion -
Apple is trying to pussyfoot trying to maintain profitability (premium logic) while providing new growth drivers (declination). It will be difficult, however, still have it both ways.
also find videos and taken in hand and iPhone 5s 5c on CnetFrance