Apple rebuffs MVNO reports amidst rising concerns over plunging stocks

Apple's shares continue to plunge as it loses Chinese market share to Xiaomi. Further, the company has also rebuffed claims about starting an MVNO service clarfying that it has not been planning on launching one. With the hits just coming on constantly, will Apple be able to withstand the stock toll? Where does the company stand?

Apple may be garnering hits these days but these are not the type that most people are familiar with. Rather, the company's stock took a dive by as much as 14 percent as opposed to the April 28 hight of $134.46. As of Aug. 5, the company has posted its fifth-straight daily loss. This is also the tenth for the last 11 trading days.

According to Yahoo, when looking at it in a technical perspective, the company's stock has gone under its 200-day moving average. Apple only managed just below $121, accomplishing so while on heavy volume.

There are two problems two this. First, Apple has been a very profitable entity while its stock borders on affordable regardless of the valuation metric. Second, stocks fall regardless, they do not have a reason for such. Looking at it, Apple may just be in a phase of consolidation following an impressive 2-year run seeing increases by as much as 75 percent as opposed to the 24 percent gain under the S&P 500. For the past five to 10 years, Apple has been performing well. The current plunge may just be another reason to buy. For this reason alone, analysts believe that people should remain calm as things appear good.

According to Wall Street Journal, concerns over the iPhone may well be the reason for the recent selloff. Apple has a chance to pull additional lever through buybacks. More importantly, should interest over the next iPhone remain, then it can generate as much more than what is presumed. The iPhone weighs much on Apple's future as the company heavily relies on it. Future performance may have to depend again on how the product line will do.

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