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'Nightline' Looks at Apple's Woes as Stock Declines 20% from All-Time High

Apple's stock is now down 20% since its all-time high set in mid-September, with investors concerned about the company's prospects for the future amid a management shakeup and questions about where the company's next major revenue growth driver will come from. Samsung's rise to prominence in mobile device markets is also weighing on Apple as the iPhone's market share growth has slowed or even declined in recent quarters.

The difficulties being experienced by Apple are gradually gaining higher visibility outside of the financial markets, with ABC's Nightline running a segment (via Fortune) addressing the issues. The evening news show had previously been granted access to Foxconn factories producing Apple products in response to public criticism over worker treatment at the facilities.

Apple is expected to have a monster holiday quarter on the strength of the iPhone 5, iPad mini, fourth-generation iPad, and updated iPod and Mac models nearly across the board. But with Foxconn still struggling to meet demand for production of the iPhone 5, which is Apple's primary revenue driver, there are some concerns about whether the quarter's performance will be quite as big as many are hoping for.

Top Rated Comments

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56 months ago
I was pretty impressed by Apple's hardware advancements this year.

Not so much with the software.
Rating: 39 Votes
56 months ago
Get in now before the stock bounce back after the holidays.
Rating: 30 Votes
56 months ago
Yes, Apple has lost its shine.

What retards.

On a different note, where are these articles about google losing more than a 100pts in only two weeks?
Rating: 30 Votes
56 months ago
Apple will be a $400 stock by year-end heading lower still. All the classic signs of a stock that has boomed and seen its best days: earnings disappointments (3 in a row), lame product launches, operational issues (maps, siri), blame-casting by throwing some management under the bus, building a grotesque new HQ, not to mention the fact that everyone and their mom already owns a iphone/ipad and/or owns the stock.

With 56 analyst recommendations to buy AAPL vs. only 5 "holds" and 2 "sells" there is a long way to go for this stock to wring out excesses. Based on the chart, etc I will start to nibble at $200.
Rating: 23 Votes
56 months ago
Buy! Buy! Buy!

This is the greatest buying opportunity I have ever seen.

Everybody should be taking out home equity lines of credit and using the proceeds to buy Apple stock. See if you can refinance your car loan. Take everything out of your 401(k) and IRA accounts. Buy on margin. Buy options. Take next month's rent money. Do whatever you have to, but BUY!
Rating: 20 Votes
56 months ago

This is the greatest buying opportunity I have ever seen.

Everybody should be taking out home equity lines of credit and using the proceeds to buy Apple stock. See if you can refinance your car loan. Take everything out of your 401(k) and IRA accounts. Buy on margin. Buy options. Take next month's rent money. Do whatever you have to, but BUY!

No thanks Tim Cook :rolleyes:
Rating: 20 Votes
56 months ago
More fear mongering to artificially bring down the stock price. What the press and Wall Street are doing to Apple's stock price should be illegal. It's really not fair. Why do we all of a sudden expect them to put out a groundbreaking new product category every 6 months? They never have operated like that and they never will. No company can.

I think the main problem here is that people are bored. Tech pundits, Wall Street, etc. think everything is a yawn now--and they say that mostly to generate clicks. Throw Apple in the title, and that's probably triple the clicks you would normally get. Is Google innovating at every turn? Nope. Android is in refinement stages too. The biggest innovation we've seen lately is actually Windows Phone, and even that is still just holding a glass rectangle, launching apps by clicking an icon, etc.

Maybe nobody has come out with the next big thing yet because the next big thing is not necessary. Maybe we have what we need right now: Information at our fingertips at all times, super fast internet speeds on the go, phones that can control our houses and cars, tablets and computers that are razor thin and light as a feather, etc. Is Google Glass the next big thing? Some think so. I see it more as another way for Google to stick annoying ads in front of my face, but that's just my opinion. After that--what else do we have?

Ugh--I don't know why people expect Apple to innovate at an unrealistic pace. They're being held to a standard that they weren't even held to when Jobs was in charge. I don't understand.
Rating: 17 Votes
56 months ago
Man, people have too much time. Stocks are bound to decline. They can only go so high. And plus, wait till they rise back up again and these same guys will jump on the "Apple is amazing" bandwagon
Rating: 17 Votes
56 months ago

can't understand how the stock market works.
all i see is a great lineup for the holiday and the stock plummet :confused:

Stocks is sort of a speculation on future performance of a company, more often than not have less to do with real world performance.

Right now investors believe that Apple will lose a good chunk of something (profit, mojo, who knows), but that the big tying factor that everyone wants is money. Less profits means less dividends paid on stock. And the lower the value.

it's a lot more complicated than that, but a quick jist of it.

There's a lot more to it again than "hey, apple has a good product lineup, so why the negative speculation". the product lineup is secondary. Profit margins, Company goodwill, Perception in the marketplace, expected revenues and costs. There's hundreds of calculations that accountants use to try and estimate if a stock is a good buy or not.

Right now, it looks like the concensus is Apple is going to have some form of lowering of expectations.

I dont entirely blame them. There is a very very long list of items that have investors worried.

I've posted this before (in another thread, and the list has grown)

add to this list

Apple lost a lawsuit yesterday and was given a 370 million dollar punishment for patent infringement. They also aknowledged willfully infringing on patents to complete facetime. For a company who's currently suing the world for the same, it's a terrible public perception. this will hurt their goodwill value and lower the company value.

Apple also yesterday put in a new list of devices for a new list of patents they're trying to protect. Apple's image is getting more and more tarnished everytime they do this and the general market is getting fed up.

The UK court ruling was bad enough for them, but their mocking of the judges decision also had negative impact on their public perception. Then their continued mockery by using javascript to hide below the page the actual notice (though I think it was removed).

Rumours that Apple had to help LG with 2 billion dollars means that, while an investment, it's 2 billion less in "profit / cash" available. devaluing the company.

Apple's tablet share has dropped in the last Quarter from 63% to 50%.

Disgruntled users who within 6 months have had their ipad3's replaced with the ipad4's

Ipad mini pricepoint has not sat well with the majority of the market. it's selling well enough, but not what forecasters predicted.

a terrible ipad mini product announcement where apple was forced to do comparisons to another persons device, instead of letting it stand alone and sell itself.

there's not a day anymore that Apple isn't in the news for things outside of their products. This is a terrible thing for a tech company. the news of patents, lawsuits, legal matters seem to outweight the new products, better services and updates by a great margin. Just go look at the news feed from here.

This is why Apple's stock has taken a beating in the last couple months and the original speculation of Apple hitting 1000 / share is a long gone imagination
Rating: 15 Votes
56 months ago
What a load of crap this is. There is no fundamental issues with Apple here - just the financial sector manipulating stock prices. So Apple is expected to have a monster quarter, but let's promote the idea that they'll miss some analysts projections (which of course have little to do with reality) and start driving the stock price down now, then buy more shares and have the reality of what Apple does drive the price back up, offering a huge upside to those carrying Apple stock.
Rating: 14 Votes

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