5 reasons for the crisis in which Apple's technology has fallen



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5 reasons for the crisis of Apple
Tim Cook, CEO of Apple

Source:
BGNES

Although this is not apparent in his behavior, Apple is in crisis. It's pretty serious. The company is experiencing its worst month in terms of stock market behavior for 10 years, said BusinessInsider. There were some issues in the company that proved too important for investors.

Apple cuts the production of the iPhone because of its low interest

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Since November 1, Apple's shares have fallen by 21%. It costs about $ 200 billion of the company's market capitalization.

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It all started after Apple announced third quarter financial results in late October. They were not bad, but they were not as expected. Analysts and shareholders who have particularly displeased Apple have sold less iPhone than expected.

On November 1st, Apple complicated the situation by announcing that it would no longer signal the number of items sold by the iPhone. The company disputes the idea that this does not reflect the "health" of its business and, moreover, more and more engaging users with additional services.

Another reason is that the smartphone market is itself in a period of contraction. According to preliminary data from IDC badysts, the global smartphone market in the third quarter of the year decreased by 6% compared to the same period last year. This is also the fourth consecutive quarter of decline.

Of course, this also concerns the iPhone. Apple has tried to address this problem by running the cheaper iPhone XR. At a price of $ 750, it is still far from being available to most consumers. The new flagship product of the iPhone XS does not attract enough interest, and even reports that Apple has reduced orders for the production of both models. And this is another blow to stock prices.

Huawei replaced Apple and is second on smartphones

There is a growing interest in cheap smartphones

The general economic situation, especially in emerging markets, is not particularly flourishing. Companies like Apple currently rely on developing countries to increase their inventories. On the rest of the market, the market is already deployed and saturated, and it is difficult to predict tangible growth.

Moreover, the competition is not sleepy. Huawei had a very good year attacking the market with a series of new smartphones that aroused keen interest. These models are more sophisticated not only in developed markets, but also in the most important areas for Apple. Among them is China, where the company is banking on strong growth but where competition and concerns over tougher regulation in the country and the trade war are not helping customers' confidence and pushing them forward. not to turn to other proposals.

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Yet, not everything is black. IDC expects the smartphone market to begin to recover in 2019. Although growth is weak, all manufacturers, including Apple, will be welcome. The company can succeed and rekindle consumer interest with the next models as long as it has something new to offer. 2019 will surely not be easy, especially with the expected progressive penetration of the first folding smartphones.

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