Apple Shares Falls Below $400 Amid Slow Sales

Prices of Apple shares dropped below the $400 mark for the first time since December 2011. This comes after a supplier hinted that the company behind numerous iDevices could be suffering from slow sales.

Apple shares dipped as low as $398.11 during Wednesday’s trading before bouncing back to $402.80 (down 5.5%) at the end of trading day.

The fallout was triggered after Cirrus Logic, which supplies sound components for the iPhone and iPad, reported a decline in sales. With 90% of Cirrus’ revenue reportedly coming from Apple’s orders, that could mean sales of Apple’s smartphones and tablets are running low or falling short of market expectations.

Apple is due to announce its latest quarterly sales performance next week and tech industry observers speculate that the numbers may be underwhelming. The company, while enjoying tremendous success in recent years, has been facing increased pressure from rivals and investors alike.

Its biggest problem is Samsung, which has been steadily increasing its market share both in the smartphone and tablet sectors, much to the demise of Apple’s own. Expert research has estimated that the South Korean company has sold 64.5 million smartphones in the final quarter of 2012, compared to Apple’s 43.5 million.

Samsung also improved its sales performance in the tablet PC market, doubling its market share to 15.1% during the same time period. Meanwhile, Apple shares in the same market slid from 51.7% to 43.6% despite a spike in sales.

Apple also has to deal with declining confidence from its investors. There are rumors that the next iPhone will be launched in September, a push back from its expected June launch. Meanwhile, a brand survey released in March showed that Apple is perceived as “less inspiring” compared to three years ago. In contrast, Samsung is seen in the same survey as “equally inspiring” in the United States.

Such depressing news and fears that Apple may be losing its dominance in the tech industry might have led investors to sell their Apple shares, which could affect the company’s revenues and profits.

Source: BBC

Image source: Mashable

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