Apple IPhone Worries Re-Emerge

The stock market is seemingly unpredictable. Apple appeared to be improving iPhone, but a news report announced that Apple will be taking production cuts. This news dropped Apple stock by 1.9% to $110 per share. This news got out when Apple told The Nikkei, a Japanese new source, that they will maintain the reduced output. Apple lowered production by about 30% in the first fiscal quarter due to sluggish sales of the iPhone. The Apple stocks have been suffering. The stock slid 28% from July to February; however, Apple shares have risen nearly 20% since mid-February.

I think that reduced output would make the iPhone more expensive because of the limited quantity, like Lulu Lemon; however, Steve Jobs once gave talks of making the iPhone as affordable as possible to put the technology in everyone's hand. Apple has not been producing new ideas. Typically, they release an iPhone in September. This year, they released an iPhone right before Easter that is the same size as an iPhone 5, but with the improved camera and hardware of the new iPhone 6S. This new release may have helped the stock market, but Apple will continually have a hard time competing with other phone companies due to the lack of milestone inventions.

This relates to our marketing class because Apple needs to market their products to increase their sales volume. Additional revenue could lead to the ability to implement new ideas and produce new technology. Apple should not waste time producing what has already been done, but rather spend time producing new ideas. The only thing keeping their current target interested is that new products are produced, but with only new hardware or a new size. People that buy stocks should be leery of Apple's current output, as history could repeat itself when a new product is released in September.


http://blogs.wsj.com/moneybeat/2016/04/15/apple-iphone-worries-re-emerge/?mod=WSJ_TechWSJD_moreTopStories

April 15, 2016