Apple Inc Shares Decline 8.24%; Health and Fitness Focus in iOS8 and iWatch May Push Stocks Up
Apple Inc shares declined 8.24 per cent after the opening bell on Feb 2 as investors continue to be disappointed of the company's smaller than expected iPhone sales last Q1 FY 2014. Apple's Q2 guidance also did not meet investor and analyst expectations.
According to analyst consensus, the growth of Apple Inc's iPhone and iPad has stalled despite making up 76.25 per cent of the company's total revenue.
Apple may be feeling the pressure of releasing trend-setting products as it slowly loses ground to rivals offering smartphones with bigger screens and lower prices than the iPhone.
Disappointing first quarter iPhone sales
Apple's guidance for the current quarter has already disappointed investors since it will be the first time the company's revenue will fall in more than a decade. Investors are worried that Apple is losing its vision since co-founder and former CEO Steve Jobs passed away.
Apple Inc shares fell 7.2 per cent in trading on Jan 28 after investors were disappointed with iPhone sales for Q1 FY 2014 despite record-breaking figures for the tech giant. The stock price slightly dipped following Carl Icahn's tweet about buying another $500 million Apple shares.
The company has not released an innovative product since the iPad and investors want a new product to bring Apple's stocks back up. Apple investors continue to wait for the next "catalyst" product to be released hopefully within the year with the long-rumoured iWatch and a new iPhone with a bigger screen.
According to CNET, Apple is rumoured to be focusing on health and fitness in the latest version of its mobile OS, the iOS8. Based on reports, Apple may be developing a Healthbook app for iOS8 which may be the subject of the company's meeting with the FDA in January.
Investors may be anticipating the release of the iWatch as the company is pressured to release "innovative" products in 2014. Rumours said the long-awaited Apple Inc wearable may be released by the end of the year.