Apple was hit hard on the Stock Market yesterday primarily due to an interpretation of their financial fundamentals which weren’t seen as overly positive in the long run. 70% of their income is being made from the iPhone, which is not good. The Smartphone’s never ending growth capability is coming to the end of its line and is considered to have much of what a user needs done today.
Apple Watch Numbers no Where to Be Seen
Of greater concern was Tim Cook would not release the Apple Watch numbers but said he was happy with them. That might be so but not everyone may be happy with the numbers.
It is commonly viewed now that the sales of the Apple watch is tepid at best. For many reviewers and analysts the Apple watch is seen as, at most, a niche product with very limited scope. It stands to reason that since a watch has always been for telling time and its ergonomics leads it to being a fine time teller. However, the small screen is not suitable for a number of things people want to work with and do on the Apple watch.
Company’s Weighting has Moved away from Traditional Roots
Add to the above the company is now doing business:
- Primarily all based on Steve Jobs work
- iPhone is a Steve Jobs piece of genius
- Mac sales continue to do extremely well but the company underplays the significance of this
- Items, such as Beats software, is questionable and further concerns keep getting raised with the lack of information
- The AppleTV’s potential has not been tapped
- Shoddy software or a lack of quality is being reported something Apple prided themselves on
- Open standards are now being forced to make a presence but only forced as the trend is to cross-platform
- Sheer lack of disrespect to the shareholder as owner and who should be receiving reasonable dividends and open enumeration of strategy
The one extremely good thing Tim Cook did was release an updated iPod line. The new iPod Touch is a gem and is as powerful but not to the scale as the iPhone. Regardless, music, which turned around Apple remains important.
Stock Receiving Downgrades
As a result of the above noted factors and others the stock is being downgraded. This goes over very poorly with the investor who naturally gets nervous.