Apple shares fell 4.2% on the opening of the Nasdaq on Friday amid bad news from China. Before the action of the American giant has closed at $112,65. However, in today’s auction, the prices decreased. At the opening of the exchange on Friday, the value of the securities fell to $108. This low since January of this year and 12% below the record level reached before the recent publication reporting ($133). As a result, Apple’s market capitalization fell by almost $120 billion.
Smartphone sales in the second quarter of 2015 in China, the largest electronics market, for the first time was lower than in the same period last year. IPhone sales are a key source of income for Apple, as China is the second most important market after the us.
The drop in sales in China, recorded in the second quarter of 2015, compared to the second quarter of 2014 was 4% and was the first since the advent of the smartphone market. Prior to that, from year to year, sales only grew. “China has reached the limit of saturation of high-tech mobile devices. To a greater extent the development of the market is now driven by replacement of obsolete models of the new, and in such cases the sale is a natural decrease”, — commented on the result Anshul Gupta, research Director, Gartner.
The decline in value of securities Apple began in mid-July after the company reported financial results that do not meet the expectations of investors. IPhone sales, which accounted for the bulk of Apple’s revenue, amounted in the last quarter to 47.5 million units, which is 35% more volume for April-June 2014, including in China, iPhone sales grew by 85%. The fifth quarter in a row overall rise exceeds 10%, but this time the sales were worse than the expectations of wall street analysts polled by Fortune magazine predicted their level of 49.4 million
Investors want to know what’s happening with Apple. Opinions are divided: some experts believe that the company will grow, and others that it will fall. The Corporation acknowledged that an overly strong dollar had a negative impact on its profits in international markets.
Apple CEO Tim cook said that the company, despite the large number of competitors, ready to aggressively gain share in the Chinese market. The rise of the middle class in China continues and this class will transform the country, cook said to analysts during a teleconference. “I think we’d be very stupid if they began to change their plans against China,” he said.
Apple demonstrates confidence in their own future. Recently the company bought for $138 million large plot in 43 acres near San Jose in Silicon valley.
