In an unusual reversal of its normal trends, Apple stock actually fell a few percent over the last few days, as leaders blame coronavirus impact for lackluster sales of the new Apple 12 iPhone device debuted this month after so much fanfare.
While Apple insiders report the company is selling laptops and other similar products well during coronavirus closures, smartphone sales are down, especially in China, where the company recorded a 29% decrease.
Assumedly, part of the problem is that people aren’t hitting the stores for new iPhones like they used to as the virus triggers social distancing requirements.
“Analysts … noted that the iPhone represents a larger portion of revenue in China than any other region, making the company more dependent on the business in the region,” writes Subrat Patnaik for Reuters. “In recent years, Apple has worked on diversifying its revenue streams to lessen its dependence on the iPhone, but Wall Street still keeps a close eye on the flagship business.”
That eye may be seeing stormy weather in the mobile market. However, stockholders are still seeing green if they bought in over the past year. A year ago, Apple stock stood at about half of its current value, and shares reached a high of $134 September 1 before settling back down to about $115 at press time.
The numbers show that Apple doubled its value during this coronavirus year – looking back, the stock reached a low of $57 March 20, just after Americans got serious about the pandemic.
Looking at new growth, Apple CEO Tim Cook seems undaunted.
“Despite the ongoing impacts of COVID-19, Apple is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive,” Cook told CNBC, as the industry absorbed the lower stock price.
Look for additional volatility in telecom as 5G continues to roll out, in China and on.