Why Apple stock has plunged 15% from its all-time high - CNNMoney
Apple's earnings were good. There are concerns that Apple may be losing ground in China, an increasingly important market for the company. China accounted for more than 25% of the company's total sales in its most recent quarter. Tech research firm Canalys reported Tuesday that Apple, which had the smartphone market share lead in China during the first quarter, slipped to third in the second quarter. Apple is now trailing Chinese tech companies Xiaomi and Huawei. Colin Gillis, an analyst with BGC Partners, said that investors are starting to wonder if smartphone sales globally are beginning to peak. "Can Apple find new geographies to drive growth. There's only so much room to grow," Gillis said. Gillis said investors want to see the company develop more products that can keep revenue and profits growing in the future. The jury is out on whether the Apple Watch will ever be more than just a niche product. The pressure to keep churning out hot new gadgets may be keeping some investors on the sidelines as well. Even though Apple is buying back a lot of stock and pays a dividend that yields 1. 7%, one value fund manager said he does not own Apple and he's still not tempted to take a bite out of it now. As great as Apple has been, they have to continue innovating," said Mark DeVaul, co-manager of the Hennessy Equity and Income Fund. Source: money.cnn.com
