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New iPhone sales are not pleasing Wall Street
The high price of Apple products has already served the company well, keeping profits increasing despite the slowing rate of sales. However, with the Xs iPhone, Xs Max iPhone and XR iPhone is struggling in the market, Wall Street investors are not convinced.
On Monday, Apple's shares sank 5%, closing at $ 194 (£ 150). This is just the latest in a slide, which is now 15% lower than their peak in October. This drop hit Apple's market value by slicing off more than £ 31bn overnight, a significant amount for a market value of $ 1bn mark for a while now.
The tech company's value fell 2.3% on the Dow Jones index, 2% on the S & P 500 Index, and 2.75% on the Nasdaq exchange. However, Apple was not the only company to see losses in many other tech companies took a hit on Monday. Amazon's shares fell by 4%, Alphabet's by 2.5% and Facebook's by 2.3%, all despite the buoyant consumer buying periods of Black Friday and Christmas sales.
Apple's suppliers, Japan Display and Lumentum, both downgraded their profit expectations for the year, with the former quoting "volatile customer demand".
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In Apple's last earnings report on November 2, the company dropped the bombshell. In the earnings report it became clear that, while profits were increasing, sales for certain devices were remaining stagnant or dropping. In addition, investors had expected the company to report more profit than they actually did. This leads to the question of the long-term viability of Apple's high-price business strategy.
While Apple is seeing some of its highest profits in history, Wall Street confidence can make or break a company. The lack of faith many investors may be more likely to come back soon.
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