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Apple suffers low turnover and diminishing stock price after launch of the iPhone 12

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Sharp fall in sale and market figure of Apple Inc
Sharp fall in sale and market figure of Apple Inc., Photo by Medhat Dawoud on Unsplash

Apple recently launched its latest smartphone line up—the iPhone 12, iPhone 12 Mini, iPhone 12 Pro, and iPhone 12 Pro-Max. The new wave of models came up with durable screens, sophisticated cameras, facile processors, and even 5G capabilities.

However, the market response was dismal and called a “lackluster response,” with customer reactions and sales figures turning out abnormal. In other words, no gleaming numbers like those we usually see in every Apple launches. Apple initially lost 4% of its market value, equivalent to $81 billion numerically.

In August, Apple became the first American company to cross the $2000 billion market value mark. However, the recent launch trashed its bright stock market prospects. Between October 28 and 29, 2020, Apple lost a significant 5.6% on its market value. The numerical loss for this value stood at $111 billion.

Deducting the recent loss from the old valuation, the net worth now stands at $1879 billion. This loss further disturbed investors’ sentiments and undermined their investments in the company.

In the totality of one month, Apple has lost $450 billion and has beleaguered a loss of 19% in the stock market.

Noting the reasons behind the market crash.

The new iPhone12 launch was the best way to dive into the 5G ecosystem. The major highlights included an upgrade of the camera, A14 Bionic chip, and other design changes. However, the high-end modifications did not lure the customers, coupled with launch delays that added more salt into the wound. Customers expressed their angst for waiting long for the new iPhone.

In August 2020, Apple announced the launch of the iPhone 12 in October 2020; it was expected to bring back features found in the iPhone 4 and 5. And, as per the pictures shared by Apple Inc., the new model promised to be a look-alike of iPhone4 and 5. However, as reported by TechStory, consumers find zero similarity in the new set of iPhones. Plus, the basic design and performance of the iPhone 4 and 5 were significantly overlooked.

More reasons for the iPhone 12’s poor sales were the exclusion of accessories like earphones. This move came for its environmental goals and packaging woes.

According to a press release by Apple Inc., this measure would promise to vanish about 2 million metric tons of carbon emissions worldwide. However, the lack of accessories—earbuds and power adapter—did not resonate well with consumers, causing a significant downfall to the new iPhones’ sales.

All in all, the turnover of the iPhone branch turned distressing for the stakeholders. Even after the holiday season, the iPhone sales did not meet the required estimates by market researchers. The sales were low by 20% in a year-on-year comparison, with the revenue standing at $7.95 billion in 2020 so far.

Though the early numbers don’t seem impressive, top officials at Apple have imposed their faith in future sales. With new 350 million upgrades coming this year with more powerful 5G cellular technology, Tim Cook, the CEO of Apple Inc., said that he is “optimistic” about iPhone sales. Trusting Apple’s design overhaul lining, it can gain the market in the long run.

An avid learner having infatuation for numbers and finance. Also, an individual with unfiltered opinions who likes to mix the metrics of both professionalism and creativity.

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