Apple Shares Down: Company's Shares Dip After It Unveils its Newest Product Line
Apple has recently unveiled the company's newest products, which include the Apple iPhone 6, the Apple iPhone 6 Plus, iPad Mini 3 and the iPad Air 2. With this being pointed out, many people, most particularly the investors, as well as the stock holders and shareholders, hoped that they will see an increase in the company's shares. This did not turn out to be the case though. So if you are wondering why this has taken place, make sure that you read this entry about Apple shares down so that you can gauge for yourself if the new products are actually worth your money.
According to USA Today Money, the stocks for Apple closed down at $1.28 or at 1.3 percent to $96.26. So when the company launched its newest iPad model, investors thought that this will "reinvigorate excitement" in consumers and redeem the popularity of the product. Unfortunately, this did not happen. A client report titled "New iPads Probably Insufficient to Jumpstart Sales," from UBS' Steven Milunovich, a tech analyst, said that the sales of iPads have "gone flat (to be generous)."
Investor Guide has also confirmed the 1.3 percent to $96.26 closing down of Apple's stock.
One of the greatest possible reasons as to why an increase in Apple Shares has not occurred, despite the recent unveiling of the company's new products, is because of the simple fact that consumers have the tendency of holding on to their tablets for a much longer time than they do when it comes to their smartphones. Since the iPad is on the more expensive side of things, consumers who are looking for tablets opt for those that feature PC functionalities and capabilities and have prices that are much cheaper than what Apple has to offer.
So what will help Apple in a time like this? In a Forbes report, it was explained that the sales the company is making from the newest iPhone 6 and iPhone 6 Plus may just help increase the gross margins Apple is making. It was also pointed out that the iPads may continue to result in loses for the company, seeing that consumers are not that willing to let go of their current tablets and just replace it with the newest one that Apple is offering.
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