Apple’s Share Price Falls Without China Mobile Deal



Apple stock took a bit of a hammering this morning, as it fell by more than $16 a share before rebounding.

There are two primary reasons for the fall. The first is disappointing reports from supplier Jabil Circuit, who cited a “shift in demand” thought to refer to the iPhone 5c, which the company assembles. This, in turn, led certain panicky investors to assume that iPhone 5c demand is not what it should be.

The other reason is the China Mobile deal — expected to have been announced today — which is still MIA. The carrier has said that it is still negotiating with Apple.

While stock did fall, it is worth noting that it has since rebounded somewhat — and that both explanations for the drop rely on hearsay. Jabil Circuit did not explicitly mention Apple as the client it was referring to and — even if this is the case — it could mean a purchasing shift on the part of consumers from the iPhone 5c to the iPhone 5s, that would actually be a positive for Apple.

The unannounced Apple deal with China Mobile, meanwhile, is thought to be imminent.

It seems that some Apple investors need to have another glass of holiday sherry and relax.

Source: Motley Fool

  • Market_Mayhem

    Speaking of wet noodles, that’s both Tim Cook and Apple. Such a weenie stock. There’s investors throwing around money like they were printing it in their basements and still Apple stock is steadily sliding down that slippery slope. Damn fugly. Tim Cook is a major disaster when it comes to putting shareholder value into Apple. I know Microsoft stock went up when they kicked out Steve Ballmer, so maybe Apple would go up a lot higher if Apple gave Tim Cook the hobnail boot. Google is so far ahead, its almost out of sight. Amazon is coming up hard behind Apple and should pass it by late next year. It’s insulting and and embarrassing to shareholders the way Apple’s finances are being handled so poorly. What’s the use of having $146 billion in cash if it never gets used to growth Apple’s revenue pile? Instead it just sits as a big anchor around shareholder’s necks. All I can say is Apple looks like it’s ready to pull another year’s end disaster for a repeat performance of 2012. Look out below because Apple is a falling knife.