Work on the Apple Watch might have seen Apple’s R&D spending hit $4.36 billion over the past financial year, but that’s a drop in the ocean compared to the amount the wearables device cost Apple yesterday.
After AAPL stock prices hit a high of $102.91 prior to Apple’s special event kicking off, prices tumbled back down to $97.99 by the end of trading: wiping $30 billion off Apple’s market value.
As Forbes points out, this is the equivalent of twice the entire market value of Tiffany & Co., the retailer Apple beat out back in 2011 to become the highest ranking U.S. retailer on a sales per square foot basis.
Why the drop? Because having spent months analyzing every shred of Apple-related data and then telling clients to BUY! BUY! BUY!, analysts are now apparently disappointed at the iPhone 6 and Apple Watch, “which seemed less dramatic than many had hoped they would be.”
Yes, it’s another infuriating example of Apple being way too heavily scrutinized by people who don’t really seem to understand its core business, but it still means that the company needs to further convince people of why areas like Apple Pay, health-tracking, bigger screens and wearables are the way of the future.
Still, after yesterday’s performance by Tim Cook, it doesn’t seem that Apple’s exactly short of compelling answers in this area.
And fortunately when you’re a company as valuable as Apple, you can afford to take the occasional hit.
Source: Forbes
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
18 responses to “Apple’s awesome new devices couldn’t prevent a $30bn dip in market cap”
Let me see, when Samsung came out with bigger phones years ago, the Apple hype machine (the tech media) laugh them out of town. But all of a sudden, Apple has copied this bigger trend, and now bigger is better. Everything is only good when Apple does it apparently. I have an iPhone and may even upgrade to another one, but I cannot stand the hypocrisy of the tech media.
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Yes, it’s another infuriating example of
Apple being way too heavily scrutinized by people who don’t really seem
to understand its core business, but it still means that the company
needs to further convince people of why areas like Apple Pay,
health-tracking, bigger screens and wearables are the way of the future.”
Are you a journalist or a fan? Being a journalist doesn’t preclude you from being a fan, but it requires that you put aside personal feelings and access things objectively as oppose to coming accross as if you are personally hurt because the world doesn’t see things your way. Why don’t you clearly explain why we should care about Apple Pay, health-tracking, and bigger screens, instead of crying about the lack of care, perceived or real?
Seriously, why then do you come to an Apple forum to be “offended” by a journalists opinion? You either have an agenda or a very low intelligence or tolerance for what others might rightfully think.
No-one forced you to read they article did they? Then just get over it and enjoy your life and let others do the same, instead of trying to push your self beliefs onto others who clearly don’t share them. There’s plenty of Apple hate blogs to choose from, may I suggest you’ll find more happiness there.
I guess you have high intelligence because you are hiding behind your computer screen at home. The interenet is full of intelligent tough guys. It will be fun to meet some of them in person.
What agenda do I have? Please tell. I have an iPhone, but think there is clearly too much hype surrounding Apple products. That hype is not irrelevant. It has influence on market outcomes. You don’t have to tell what your agenda is. Your posting history says it all.
I’ll leave the hiding behind a screen to you seeing as your rant is so full of shit. I call it as I see it, so don’t get your knickers in a twist, again. If you choose to read stuff you feel offended by, then don’t blame the author. Take a teaspoon of cement and harden the fuck up.
You call it as you see it, as in going around the internet calling people paid shills if they don’t support your opinion etc.? What? Is it your way or the highway? I never knew one was never to take issue with something said on the internet. Now that I know, I will keep it in mind. You should too. I hold a so called journalist to a higher standard than I do a commentator on an article by the way. Your last sentence gives us a sense of just how intelligent you are. Read between the lines if you are capable.
So are you a “troll of the night” paid by Samsung to entertain us, or are you just lonely?
I see you don’t get it. My point, you criticised the author because you don’t like his opinion, but that is what he gets paid to do, write his thoughts and opinions. You may disagree, but to question his motives is childish. I don’t agree with your stupid rant as it has no facts. You haven’t seen the devices, you haven’t used them, yet based on nothing, you have formed a negative opinion, based on what? Nothing. I don’t come here to read your emotive comments, I come here because the stories speak to me and relate to my choice of technology. I own a Samsung TV, but I don’t go onto Samsung forums spruking my hatred of that corrupt organisation. Enjoy your lot, but don’t shove your bile down people’s throats.
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I believe if you look back, this has been the case for years.
Almost without exception, major presentations from Apple result in a drop in stock price.
If Apple does not need or like people who don’t “understand” them, they should fold up their tent.
“Yes, it’s another infuriating example of Apple being way too heavily scrutinized by people who don’t really seem to understand its core business, ”
Not everyone needs to drink the cool aid. There are plenty of great things in what Apple announced and also more holes that competitors can drive their marketing through. Apple is now hitting “most” of the competitive bullets and charging like they exceeded all of them. A $1,000 smartphone is a joke in the day when Apple is only 14% of the market, unless they want to be the Tiffany of technology.
Oh, so the $900 Samsung Note 4 is ok? derrrr.. umm.. right.. technology bigots are awesome.. Especially when they only quote the max price.. and then incorrectly.. It’s $950.. for 128GB.. $850 for 64GB, and $750 for 16GB… for the 5.5″.. even lower for 4.7″ price points.. You know.. current MARKET standard pricing…
How do you know you’re a tech bigot? you only state things that highlight your slanted view.
This isn’t a story. Okay, well it is . . . it’s just the same story that’s been reported after every keynote since the iPhone 4. Pretty sure their stock price is up since then. This is click-bait . . . and I’m sad that it worked on me . . . and got me to post a comment.
Apple has taken a hit after every keynote since Jobs’ passing.
If Apple is trying to impress Wall Street with new products they might as well forget about it. I’m sure it can’t be done. I believe Tim Cook has done everything humanly possible to boost Apple’s share price but it’s simply not going to work out. Apple is not a company that’s a Wall Street favorite. I think there are too many investors who have bet heavily on other tech companies who go after major market share. That’s all Wall Street is concerned with. Wall Street doesn’t care about quality or customer service because they consider that a waste of money. They believe a company should only sell lots of cheap products and forget about any follow up services. It’s a weird way of thinking but I think that’s probably the easiest way to generate high sales.
I agree with everything you’ve said. But . . . Wall Street has made Apple the largest (by market cap) company in the world . . . it’s at worst a love/hate relationship. Apple has gotten this valuable by doing it their way . . . make a few, great products that users love to use, and let the chips fall where they may. Largest company in the world . . . with only 17% world wide market share. I think Apple knows what they’re doing.
This is simple stock price manipulation through the media. Drive the price of the stock up by lots of speculations and good press. Immediately after the announcement, put out lots of bad press and “disappointment” articles to drive the stock price down. Then buy up the depressed shares at a discount and reap the rewards when the stock price goes back up again when the general public is in love with the new products after all.
Stock price back up to $100.39 – Wall Street largely actually reporting that they think the show lived up to the hype..
Of course.. the main reason is Apple Pay.. but, whatever.. /shrug
Yeah and so far today AAPL is up $3 coz Wall St has realized that Apple Pay is one hell of an earner.