Although Apple is currently focused on providing services they are still producing and selling products such as the ever popular iPhone. Recently there has been a drop in iPhone sales that have worried and concerned investors interested in the popular company.
Investors playing into the stock market have voiced out their fears and unsureness about Apple due to the “17 problem” (the 17% drop).
In order to understand the issue, let’s look into the problem properly.
What has caused this drop?
iPhone’s are known to be quite expensive and updated phones are constantly being created and published. Apple has been around now for forty-three years and has seen a large drop recently in sales. This drop could be for a variety of reasons. The 17% drop in sales may have something to do with the economy and the increasing prices of the iPhone. While the United States has been getting better since the reception, not every person in the middle class can afford an iPhone.
iPhone Present Market Price
One thing iPhone users have noticed is the increased prices of the newly released phones. The newly released iPhones can be sold anywhere from seven hundred to over one thousand.
What does this mean for the Apple Stock?
This drop in iPhone sales should do little to deter investors and interested buyers. This surprising statement would strike fear into anyone but it doesn’t mean too much when we look at the larger picture.
While Apple may be losing sales and business on this end, Apple software and services are rising. Services according to a chart referenced on MarketWatch, have increased by 16%. These services include; iCloud, watchOS operating systems, and more.
Apple also recently announced and implemented an aggressive buyback program that increases the stocks worth ($50 a share over the next five years). This can be taken as you wish.