Why Are Apple Inc. (AAPL) Shares Sinking?

Page 1 of 2

As of this writing, shares of Apple Inc. (NASDAQ:AAPL) have fallen close to 4% in late morning trading, and did hit as low as $545 an hour and a half after the opening bell. The obvious question for investors is: why are shares of the tech giant slipping? After all, with talk of a special dividend (see Will Apple Pay a Special Dividend?), growing market share in its smartphone segment, and ongoing snippets about the iOS’s domination of online browsing (see Apple Products Make Up the ‘Bulk’ of Mobile Traffic), there have been many qualitative reasons to be bullish about Apple lately. Don’t even get us started on the stock’s bargain bin valuation either; in the mind of a pure value investor, it’s hard not to be attracted to a 9.9X forward P/E and a sub-1.0 PEG ratio.

Apple Inc. (AAPL)Well, here’s one piece of negative news that may have driven shares of AAPL down, according to Reuters. Research consultancy firm IDC released its latest tablet forecast today, and it concludes that Apple Inc. (NASDAQ:AAPL) is seeing increased competition from Android in this arena. Originally reported on the LA Times, “Android-based tablets continue to gain momentum [...] market share for Android tablets [is expected to] rise from 39.8% in 2011 to 42.7% in 2012. Apple is expected to see its market share for tablets decline, from 56.3% to 53.8%.” Moreover, Ryan Reith of IDC had this to say:

“The breadth and depth of Android has taken full effect on the tablet market as it has for the smartphone space [...] Android tablet shipments will certainly act as the catalyst for growth in the low-cost segment in emerging markets given the platform’s low barrier to entry on manufacturing. At the same time, top-tier companies like Samsung, Lenovo, and ASUS are all launching Android tablets with comparable to premium products, but offered at much lower price points.”

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

The 20 Biggest Contracts in MLB History

The 7 Worst Blown Calls in Sports History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!