Monday, March 4, 2013

Apple Stock continuously dropping

I was discussing about the stock vales of most of the software companies started declining due to stagnation or lower growth rate in one of my earlier posts - Stock fluctuation


The main contributor for this fluctuation is lack of innovations in the software companies. Apple is the best example for this. If you we see the history of Apple, iPod is the first product that gives big spike in the revenue in 2002 and later on by iPhone and iPad.

In my another blog post I was talking about the growth of Apple, which is mainly due to innovation.
Steve Jobs faces ups and downs during his initial stages. They didn't grow much until 2005. There comes their new innovation iPhone entered into the market. After the release of iPhone, they were growing year over year. In 2010, they released the iPad with the touch based similar to iPhone.

They made an exceptional growth in the first half of 2011 and the credit goes to Steve. 
But after Steve Jobs, there is no innovation from Apple and their value started diminishing. In the last few months this was reflected in the stock value. In fact the Q2 2013 result was below the analysts expectation. In addition, the competition from Samsung is high that they were not able to meet.

If they are not going to do something drastically, they will become one more Microsoft in one decade.

Saravanan