5 reasons why Apple stocks are falling
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The emergence of affordable Android devices
According to reports the free and open source Android operating system is registering huge success in the segment of tablet and phones, and this is posing the biggest challenge to the iOS operating system based iPhone and iPad.
The sale of Android devices is increasing because of their affordability. For instance a decent phone could be availed at about Rs 20000 and a decent tablet at about Rs 12000.
The new forecast from IDC for 2013 sees Android's worldwide tablet share to increase from 39.8 percent in 2011 to 42.7 percent for the full year of 2012. Apple's share to slip from 56.3 percent in 2011 to 53.8 percent in 2012.
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Innovation has come to a standstill at Apple
It “worried” me that “Microsoft was becoming a "more innovative company than Apple" said the honest co-founder of Apple, Steve Wozniak at TEDxBussels.
Analysts see that innovation has stopped at Apple after Steve Jobs.
The iPhone launch was called “utterly boring by Wired. BBC reported “Apple’s iPhone launches no longer excite”. “The new iPhone does not meet those lofty ‘legacy’ aspirations” of Steve Jobs reported Forbes.
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The high pricing of iPad Mini
In October, as soon as the Apple iPad Mini was launched, especially the prices were revealed the shares of Apple dipped down from $634 to $616.
This also happened after Apple could not meet the predicted sales target for iPhone 5. The stocks dropped from $705 to $663 after the first weekend of sale.
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The predictions of Analysts
Jeffrey Gundlach, the CEO and co-founder of investment firm Doubleline Capital expected Apple stocks to fall as slow as $425. He pointed to the 7.9-inch iPad Mini as an example of “lack of innovation at the company”.
The shares took another fall after the announcement of tie up of Nokia and Chinese mobile giant.
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Competition posing a challenge
Apple is challenged by the new operating system from Microsoft which can run smartphones and tablet devices. With the new operating system Microsoft is also coming up with its own range of devices which are competitively priced.
Companies like Nokia running wither Windows 8 operating system and Android are also coming with good devices. Recently Nokia struck a deal with the largest Chinese carrier China Mobile for selling of Nokia 920 which is running Windows 8 operating system. Android is already giving stiff competition to the Mac giant.