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Apple Shares Down 8%, Google’s Progress Worrying Investors

Business & GovernmentNews
by Radu Tyrsina, 01 Jul 2011News

With no word about a new Apple product, and with Google gaining ground in the smartphone market, Apple shares dropped another 4 percent this month, bringing an overall fall of 8% since February this year, Bloomberg reports.

With Steve Jobs’ medical leave to fight his cancer, as well as strong evidence of Android smartphones continuously increasing in market value, many shareholders are waiting for a new device to rally the stock, although profit has risen by more than 75% in the past two quarters.

Moreover, with large investors such as Goldman Sachs, Janus Capital Group as well as Wellington Management reducing their stakes in Apple this year, it is hard to see major improvements in stock value.

Nonetheless, the giant will certainly get back on its feet, at least according to analysts, who predict that the shares will rise in the coming months to $457.08 from the hardly feeble $335 current value.

With the iPad’s constant domination of the tablet market, and word that a new iPhone is set to arrive in September, it’s hard to contest their projections.

However, Android will still remain global leader, set to hold roughly 39 percent of the worldwide market for this year, compared with Apple’s 18.2 percent. That, combined with many investors uncertainty of Apple’s ability to outperform the market and suspicion that Apple’s golden days have come and gone, may ensure that the major tech corporation will continue to decline until the new iPhone arrives.

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