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Apple takes a fall

Most of you are no doubt aware of the big stumble in the Apple share price during the end of 2018 and again on 3 January 2019.  Subsequent to that it improved a bit but is still about 30% down from its highs of last year.  Apple blames a reduction in iPhone sales in China saying that, amongst other things, existing customers are sticking with older models but just getting new battery replacements for their iPhones.   

Analysts say that the problem is that Apple is charging too much for its phones now and that is putting off many people, in particular the Chinese.  The iPhone still brings in two-thirds of Apple’s profits and so, when the company warned on 3 January 2019 that its results in China were looking bad the share went down 10% alone on that day.  One of the investors who will be hurt by the big drop is Warren Buffett, who invested in Apple at a late stage – probably more than twice the price I sold my Apple shares for after making a profit.  Of course, that means I sold my Apple shares too early, but Warren Buffett, who often complained that he did not understand the technology shares like Google, got involved in Apple very late.   

Having said that, I have always seen a particular tendency in the market, particularly with American shares, where for a while they praise they can do no wrong and then for about 6 months everyone talks them down saying how bad they are and after that they talk them back up again.  I would imagine people buying Apple shares at round about the current prices, while they will not make huge profits, are likely to see some gains.   

*I am not an investment advisor and you should discuss any investments you make with your investment advisor and not rely on my thoughts and opinions in this blog. 

Posted by Michael de Broglio on Friday 01-Mar-19 Share on Facebook   Tweet It

Post a Comment

Claudia B  said:
on Friday 05-Apr-19 08:35 AM
I have never had an I Phone before, but I know it is a top brand that every one want's to have. I don't think it is a bad thing to invest in the Apple brand, everything will have the ups and downs.

Sinead  said:
on Tuesday 02-Apr-19 11:04 AM
I have never been an Apple user. The thought of buying an iPhone has never even crossed my mind. I feel like it is a nice looking phone but overpriced and impractical. The sales going down must have something to do with the new production team. Surely they will bounce back if the supporters stay loyal. There really is a certain market that buy into Apple products, but personally I don't think I need any in my life.

Jadine Esterhuizen  said:
on Tuesday 02-Apr-19 10:22 AM
The more expensive a brand becomes the less interested people are in buying it. Especially with smartphones that are everchanging.

Liz  said:
on Monday 01-Apr-19 04:44 PM
The i phones have become extremely overpriced, it is near impossible to keep up with the newest models, however, I tend to agree with Prishani , that Apple will somehow always bounce back.

Zindy  said:
on Friday 29-Mar-19 08:34 AM
Never owned an apple they are a very expensive brand, i have always been a loyal Samsung user for many years now and still happy.

Prishani  said:
on Thursday 28-Mar-19 05:04 PM
I think investing in big companies like this you will have the ups and downs, somehow I think Apple always manages to bounce back!

Bianca Taljaard  said:
on Thursday 28-Mar-19 01:33 PM
I've never really been into technology, I have had a Huawei P8 now for 3 years, didn't renew my contract when it expired, and I am very happy with it

Melissa van Tellingen  said:
on Wednesday 27-Mar-19 08:06 AM
I've never been a fan of Apple. I feel like they are extremely overpriced and nit user friendly. Maybe it's just me, but I feel like Samsung and other competitors make great phones for half the price. Not sure if it's worth the price.

Michelle Smal  said:
on Tuesday 26-Mar-19 09:56 AM
I believe having some shares in Apple will be a good thing. Even though the shares have dropped. It will still be a good idea, because Apple is such a huge success. I have a heard so little complaints of people I know who owns some sort of Apple device.

Thabitha  said:
on Tuesday 26-Mar-19 08:53 AM
It seems like their devices are all most the same and expensive, maybe that is the reason people are no longer interested and again no one will invest for low profit.

Michelle D  said:
on Tuesday 26-Mar-19 08:29 AM
The issue with Apple at the moment is that they have some pretty reasonable competitors that are being sold at a fraction of the price. Apple has always banked on things like apple music to make them indispensable but now there are different, better, alternatives like spotify.

Sarah  said:
on Monday 25-Mar-19 07:51 AM
I am not a big fan of apple products. I do enjoy Samsung products a lot more.

Natasha  said:
on Tuesday 19-Mar-19 08:10 AM
I am not a fan of the apple brand they are very expensive and then the whole setup of a apple phone just makes me confused maybe if they drop their prices a bit things will go better with them.

Helen  said:
on Friday 15-Mar-19 08:20 AM
iPhones are always have been more expensive on the market compare to other brands. I would say that the quality of them is a lot better. I would like to have one, but can not afford it yet. I think South African market is also overprice them!

Daniella  said:
on Wednesday 13-Mar-19 12:24 PM
I really do love the apple brand however it is ridiculously expensive- I read an article that the production cost of the newest Iphone is $395 which is around R5,662.82
and sold for R30,000.00. Their profits are massive!

Ashleigh  said:
on Wednesday 13-Mar-19 09:16 AM
My daughter has an apple, she loves it but the spares alone for that phone cost as much as buying a new phone. They really need to re-look at their prices on their devices.

Lucretia  said:
on Tuesday 12-Mar-19 04:57 PM
I have never owned an Apple and I must be honest, the cost of them has always made me wonder why would I want to spend that kind of money, especially in a country like South Africa where crime is so high.

Zandelee  said:
on Monday 11-Mar-19 08:26 AM
I do not own one apple device. I believe that they are overprized and that other phone and laptop makes are equally as good as them and available at a cheaper price.

Angelica Canosa  said:
on Thursday 07-Mar-19 06:15 PM
Apple needs to come up with new technology to keep up with samsung and huawei. Although I still love apple and haven't been open minded to other brands.

Joyce  said:
on Wednesday 06-Mar-19 05:04 PM
I think Apple takes a fall because of its being expensive and think that its existing customers realized that it is better if they stick with older models.

courtney  said:
on Wednesday 06-Mar-19 12:24 PM
I'm not a fan of Apple. It's a very good make and it has a good name but it's way to expensive. Nowadays people only buy a phone/tablet for the quality of the camera.

Angelique Jurgens  said:
on Wednesday 06-Mar-19 09:40 AM
I must admit I was tempted into giving into the huawei p20 purely because of the camera. I then after many years decided to remain loyal and make the leap from a 6s to the Iphone XS. Also my apple watch would be pointless with a huawei and then I would feel as if I wasted money buying it. I must say the only big noticeable difference is the size of it and the camera quality. I don't think I will be upgrading when it is time to upgrade but I wont rule out a different brand.

Alexis  said:
on Tuesday 05-Mar-19 02:54 PM
I have never seen the interest in Apple...they are too expensive and even a simple thing og getting music on you phone costs you. I am not surprised to hear they are not doing too well - but it could just be as all usually is....a fad and people are over it now....they will have to bring out a product that is different to what they have already done to bring attention to themselves once again

Victoria  said:
on Monday 04-Mar-19 04:52 PM
I definitely agree that Apple is expensive so i understand why people are sticking to older models and just getting a new battery. There are many new and amazing phones being released lately and i think apple has a lot of competition between the other brands. Also like other people have said below you are paying for the name Apple.

Fikile  said:
on Monday 04-Mar-19 12:15 PM
Most people are starting to use the latest phones that are more complicated i mean the ones that can challenge their mentality and don't keep take too much of their DATA or even money for Apps and more.

Bianca N  said:
on Monday 04-Mar-19 09:55 AM
Because Apple is such a huge name, their products are expensive. But I think that maybe their prices are now ridiculous even to those who used to buy the latest products as soon as it was released.

brumilde  said:
on Monday 04-Mar-19 08:16 AM
Apple is an expensive brand, you pay for the name, but the quality and the effort they put in their products these days is terrible. Lets just add another cameras to the phone , mark it as the newest and best and mark up the price. No innovation. We want the phone of the future . We want apple to show us here is a holographic phone that is implanted in your skin and checks your health and vitamins and can tell you if you have cancer.

Michelle Smillie  said:
on Friday 01-Mar-19 01:11 PM
I agree with David, I think the passing of Steve Jobs had a big effect on them, one that can be reversed but will likely take some time, and where money is involved, time is a very tricky thing to play around with.

david  said:
on Friday 01-Mar-19 12:39 PM
apple's main problem is the lack of steve jobs.


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