Apple shares dropped in price by 3.2% amid concerns investors because of the loss of positions in China. At the close of trading, its share price was $114,64 is the lowest 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 to $113.4 billion
The decline in Apple shares began two weeks ago after the company reported financial results that do not meet the expectations of investors. And on Monday, research firm Canalys said that in the second quarter, Apple gave away the top spot in the Chinese smartphone market a local brand Xiaomi. According to analysts from Canalys, Xiaomi took to 15.9% of the local market, Huawei is 15.7%, while Apple was only third, although ahead of Samsung. Analysts say that the stagnation of the Chinese market leads to increased competition.
Traders also note that the share price of the most expensive company in the world for the first time since September 2013 was lower than the average price over the past 200 days, technical indicators, sometimes acting as a support level for the stock. At the break of $110 may be followed by a further decline, according to “Vedomosti”. Some investors fear a repeat of 2012, when for seven months of the share value of Apple fell from $100 to $55.
Apple CEO Tim cook said last month 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.