Apple’s Stock Plunges, Wall Street Analysts Deeply Flummoxed

You’d think that Apple’s stock would have skyrocketed after the launch of their highly-anticipated iPhone 5. After all, there are people across the world who will readily trade in their not-so-obsolete iPhone 4S for a shot at the new, smooth-bodied offering.

Curiously, that’s not the case here. According to eWeek, Apple’s stock has plummeted significantly five weeks after the launch of the iPhone 5. To be exact, Apple finished its trading week at $604.00 — a whole 14 percent less than its enviable $702.00 barely a month ago.

So, what gives?

Plenty of theories have apparently been presented. Trip Chowdry of Global Equities Research postulated, “Guidance is significantly lower as probably the (iPhone) demand was pulled forward — as for the first time a new iPhone was launched in more than 30 countries in the same quarter. Historically the new iPhones where not launched in more than 15 counties in the same quarter.”

Michael Wakley of Canaccord Genuity had a different take: “We believe the soft December quarter guidance was primarily due to lower gross margins, given Apple anticipates new and re-priced products will comprise 80 percent of December quarter sales, and new products tend to have lower gross margins during the early stages of productio.”

It goes on, of course. Nonetheless, this really is just interesting tidbits of information. At the end of the day, Apple is probably still going to make us sell off months-old phones to purchase the next iteration of the franchise.

Cassandra Khaw is an entry-level audiophile, a street dancer, a bibliophilic wanderer who makes her living with words and awkward biographies.