Soon after the launch of IPhone 4S, Apple stocks plunged by over five points in early trading in New York. Analysts, however, said that this was well anticipated.
It is a common belief that the launch of iPhone 5 not getting materialized after weeks of hype is one of the key reasons of this down fall.
According to Hamza Salem, IDC senior research analyst mobile handsets MEA and Turkey, “the stock price has been moving around since Steve Jobs resigned, and with all the legal battles Apple has been fighting against HTC and Samsung, the new model has been a much-awaited high moment for Apple.” Salem further said, “Tim Cook has been on the operations end of Apple and has been credited with increasing the profit margins by streamlining the supply chain but he comes from a different mindset and doesn’t have technical knowhow for creating new products.”
Apple going through this turmoil in simple words is because no fundamental changes have been made in the recently launched iPhone which was a big let-down for not only its users but also the markets. Moreover, with no Steve Jobs, the speculations would always be that the Apple might lose its path to success in near future.