Apple Inc. (NASDAQ:AAPL) Loses Crown as World’s Most Valuable Company
Northern, WI 04/19/2013 (GDPInsider) – Apple Inc. (NASDAQ:AAPL) has lost some ground and in doing so the company has given way to Exxon as the most valuable company.
The news isn’t terribly surprising given earlier revelations that there might be a potential slow-down in iPhone and iPad production—something Apple can least afford. The market responded in kind and shares in Apple tumbled below the $400 for the first time since December 2011.
Exxon for now is sitting pretty with a market cap of a few billion dollars north of Apple’s $380 billion, but many believe a swing could reverse the position of the two sooner rather than later. The question is whether that ‘swing’ may happen before the end of the summer.
One of the biggest suppliers of audio chips for the iPhone and iPad is Cirrus Logic Inc., and the company has suggested that an “unnamed” customer may be moving towards a new chip supplier. Analysts believe that “unnamed” customer is indeed Apple and have duly forecasted a slow-down in sales for the company’s two best-selling products.
Reports suggest that things could really slow down for Apple if the supplier issues aren’t ironed out. Competitors like Samsung seem ready to pounce and given the lukewarm reception of the iPad mini last year, the stock could be further depressed. Today’s opening of $387.99 was more or less a continuation of investor uncertainty from the day before, but more importantly it underscores the 44.97% drop of the stock on its 52-week high of $705.07.
Any silver lining?
Well there are a few. For one, the stock is trading 10.74% above Apple’s 50-day moving average of $434.68. This will give Apple loyalists in the market something to base their faith on. The other good news for Apple is that its biggest competitors are not doing too badly. Google is up despite losses at Motorola and the general sentiment among analysts is that Apple’s decline will soon end. And if nothing else lines the clouds, news that Apple’s chief designer, Jonathan Ive has made Time Magazine’s list of the 100 most influential people this year should give investors something to feel good about.