Apple's evaporation of 64 billion counts causes Apple's share price to fall

- Apr 26, 2018-

Apple's stock price has fallen by 7.1%, causing its market value to evaporate 63.9 billion U.S. dollars. Inventory may lead to Apple's stock price decline, "slow down the door" continues to ferment; iPhone 8 iPhoneX problems occur frequently; users of the iPhone's freshness and demand decline; the Chinese market continues to decline, etc., are potential reasons.

As of the three trading days on Monday (22nd) of the United States local time, Apple's share price has fallen by 7.1%, causing its market value to evaporate 64 billion U.S. dollars. Last Thursday morning, Apple chip supplier TSMC announced weaker-than-expected performance expectations, which triggered a drop in Apple's stock price.

TSMC is the world's largest semiconductor chip manufacturer and Apple's most important chip partner. The company said that its second-quarter revenue is expected to be 7.8 billion to 7.9 billion U.S. dollars, while Wall Street is estimated at 8.8 billion U.S. dollars. The company attributed its forecast to the "weak demand" of the mobile phone industry.

Inventory may cause Apple's share price to fall

"Deceleration Gate" continues to ferment

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Because the deceleration gate that delays the performance of older iPhones is still fermenting, Apple has already faced more than 26 class actions worldwide.

According to electronic court records, Apple currently faces 24 "low-speed door" class actions in the United States. At the same time, apples were also sued in Israel and France.

It is reported that many lawsuits require Apple to compensate all users affected by the “downshift gate”, provide free replacement battery service, and refund users who have just purchased a new iPhone for the best performance experience. At the same time, Apple is required to add a description to the iOS system to explain how to prevent performance degradation by replacing the battery.

iPhone 8 iPhone X Frequently Asked Questions

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In the IPhone 8 series mobile phone, more than two battery pack events have occurred in less than two weeks after the sale. An iPhone 8 in Taiwan is charging a new battery pack after 5 minutes; in Hong Kong, the iPhone 8 battery is bloated and the fuselage is burst; the iPhone 8 in Taichung, Taiwan, China is in the standby state without warning. Canadian Apple user Anthony Wu said that he bought a new iPhone 8 Plus on Sunday and retreated on Monday because the screen was opened; iRepair, an Apple repair shop in Greece, also provided a photo showing the display of the mobile phone in the photo. Be opened. The customer took out his mobile phone from the box and charged it overnight. He found that the mobile phone screen was opened the next morning; Mr. Liu of Guangzhou purchased the iPhone 8 Plus on an e-commerce platform and opened the package and found that the machine had burst and the screen was ejected. He opened, and he did not perform operations such as charging, and no signs of burning were seen.

Similarly, after IPhone X was opened, there were corresponding complaints. A pair of Russian twins claimed a claim of 20 million rubles (approximately 2.238 million yuan) from Apple, because iPhone X could not recognize the difference in their faces. According to reports, the twins from Vladimir City stated that the iPhone ID ID of Face shows that their faces are the same, so they decided to sue Apple to court and asked them to pay 20 million rubles for them. 

User's freshness and demand for the iPhone is declining

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According to the latest report from Nikkei, Apple plans to cut its iPhone production by 10% in the first quarter of 2017. If the news is true, it will be Apple's second consecutive year in the first quarter of the new year's production cuts. In the first quarter of 2016, Apple's iPhone output was lowered by 30% due to high inventory.

The Nikkei News makes the above estimation after statistics on supplier data. Nikkei News said that a variety of iPhone models cut production because of declining demand, and demand for the iPhone 7 Plus's capacity is limited by the shortage of camera sensors.

In the last financial year that ended on September 24, 2016, Apple's revenue and profits fell for the first time since 2001. In the previous quarter, sales of Apple's iPhone, iPad, and Mac were down 5%, 6%, and 14% year-on-year respectively. The decline in Apple's revenue was mainly due to the poor performance of iPhone sales. As of the previous quarter, iPhone sales have dropped for the third consecutive quarter.

The Chinese market continues to decline and is replaced by domestic mobile phones

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While growing in most of the global market, Apple has made a comeback in Greater China. In the quarter, operating income in the Greater China region fell by nearly 10% to 8 billion U.S. dollars and is expected to reach 8.57 billion U.S. dollars, which was the sixth consecutive quarter of decline. Cooke said that in fact, mainland China's current quarter sales remained the same period last year, but Hong Kong is still dragging sales growth in Greater China. Apple’s chief financial officer, Mestre, said that “the Hong Kong dollar is linked to the U.S. dollar, and the strong U.S. dollar has caused tourists not to buy mobile phones in Hong Kong”.

Although Apple said that sales volume in Mainland China has not changed much, shipments have been deteriorating and have been squeezed out of the top four by domestic mobile phones. International research company Counterpoint released data showing that in the second quarter of 2017, China's smart phone market shipments increased by 3% year-on-year. Domestic mobile phone brands Huawei, OPPO, vivo and Xiaomi were the four largest smartphone brands shipped, Apple ranked. The 5th, the market share is 8.2%.

China was once a bright spot in Apple’s financial report and once became the engine of Apple’s global revenue. In the first quarter of 2015, Apple’s mobile phone sales in Greater China surpassed the United States for the first time. However, recently, Apple’s high-cold apple has forcibly charged “passing tolls” on the “rewarding” function of applications. In China, this caused a controversy and caused the image of enterprises to be greatly reduced in China. According to the Wall Street Journal, Chinese users prefer to give up on Apple and switch to Android rather than some software that has gone deep into life.

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