Apple stocks continue to face challenges, estimates suggest tough road ahead

Apple continues to face challenges as its stocks continue to fail to generate enough appeal on Wall Street. One analyst also claims that the company may be facing a tough road unless it can capitalise on the best thing like IoT.

Apple went to a US$106 (AU$145.22) low last December 28. This is way below the company's 52-week high of $134.54.

"I think the blooms are coming off the rose a bit for Apple. Not just in terms of the multiple, or in terms of what investors want to pay, but in terms of products," Dan Ives, an analyst at FBR Capital Markets, told the CNBC. "Apple came out on the watch side; was not successful. Streaming on TV has been suspended."

The turn of events for Apple is quite unbelievable, considering its stock has been a strong gainer for the decade. Its last trading low was at US$7.17 (AU$9.82) per share since 10 years ago, according to Forbes. The company gained momentum and pulled out from the slumps, steadily climbing to as high as US$119.75 (AU$164.05) come 2014.

"However, Apple lost steam in recent weeks as disenchantment grew among analysts who have gotten used to expecting impressive growth data and miracle products from the company that has already produced a line of electronic marvels that transformed it into a global brand," wrote Gene Marcial on Forbes.

He added, "Apple’s own success has made it hard for it to come up each year with innovative, sleek yet simple functional devices, such as the iPhone, and the iPad."

Nonetheless, Apple's underperformance and risk of being undervalued can be saved if the company can take advantage of IOT/IOE. Analysts see it as one of the fastest growing markets - thus the range of opportunities. Apple is indispensable to IOT/IOE because of the huge market share. China stands to become part of that future. Apple, being the strongest mobile brand in the globe, can potentially see growth in this area.