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A Reason Why Apple Stock Dropped After They Launched The Iphone 12

iPhone 12 release

Apple on Tuesday (13/10) officially released the iPhone 12 line, which many parties have been waiting for. Unfortunately, after its release, Apple’s stock fell by 4%.

MarketWatch lists shares of Apple Inc. (AAPL), -0.39%, down 2.65% to US $ 121.10 on Tuesday. The fall of Apple’s shares halted the gains that had been achieved for two consecutive days. AAPL closed at US $ 16.88, far below the record high on September 2 which reached US $ 137.98.

The performance of this Apple stock looks even worse when compared to a number of its competitors in the same sector on the same day.

For example, Microsoft Corp. (MSFT), -0.54%, up 0.66% to US $ 222.86, Alphabet Inc. Cl A (GOOGL), -0.51%, up 0.16% to US $ 1,567.07, as well as International Business Machines Corp. (IBM), -0.83%, down 1.66% to US $ 125.10.

Based on the report Market Insider, Apple’s stock began to fall shortly before the Apple Event began. To make matters worse, the iPhone 12 was officially introduced. Apple is estimated to have lost $ 81 billion in market value at that time.

Reasons for the Decline in Apple Stocks

iPhone 12 event

The drop in Apple shares after the release of the iPhone 12 is quite surprising considering that the latest iPhone line is one of the most awaited smartphone products in 2020.

Varun Kannan, an analyst at Canalys, outlined several possible reasons for the drop in Apple shares last Tuesday.

Kannan specifically highlighted important things like the availability of charger adapters and AirPods in the box. The lack of upgrade factors can also affect.

“There are many reasons for that. The equipment price is one of them. The fact that Apple does not provide accessories such as a charger adapter and earphones in the sales box is another thing. Regarding features, only 5G network support is the only significant increase,” said Kannan, quoted from LiveMint.

Another analyst, namely Prabhu Ram from Cybermedia Research, also revealed several reasons that led to the drop in Apple shares. One of them is the excessive expectation on the iPhone 12.

“The decline in Apple shares can be attributed to the excessive expectations that appeared in the public regarding the Event, including the announcement of the iPhone 12 series,” he explained.

Even so, Ram added that a number of iPhone 12 features and the presence of the Home Pod Mini device will later be able to make Apple compete in the market against Google and Amazon, especially in the product market smart home.

Also read about Global Economic Growth Predicted To Minus 5 Percent, Worst In 80 Years.

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