The US based iPhone and iPad maker Apple Inc. gets product and share price cuts from famous retailers like Walmart and also from Wall Street, recent media reports disclosed.
The price of brand new iPhone 5 has recently been cut short by famous retailers including Wal-Mart Stores, Best Buy Co., Inc, Target Corporation and Radio Shack by nearly 50 US dollars selling the latest gadget at low price. Most recently, Apple Inc stock has also been cut short by various firms including Wall Street, Mizuho Securities, Jeffries, UBS and Canaccord Genuity, badly hurting the investors’ wealth in company.
Analysts are of the view that whether to continue with price cut sales of iPhone depends on the sales results. If the sales would come in a boost then the price cuts may vanish. Share price cuts on Apple may force investors to start thinking of other best possible options in the smartphone industry. The most evident is South Korean Samsung Electronics, a company that offers pretty swank gadgets.
The consumer demand for iPhone 5 is not strong enough as Apple expected it before launch. The sales are getting a negative impact from numerous factors including weak global demand, growing market saturation and incremental innovation in the industry. iPhone 5 sales are far less than the estimations made by industry analysts.
Still in these troubled times a majority of analysts, except Leung from Citigroup, voted for Apple Inc. (NASDAQ:AAPL) stock with a strong buy rating. Apple stock is still up 31%.
Citigroup expects capital expenditures from Apple Inc to rise near 10 billion US dollars in 2013. This would result in 21% growth from 2012. For 2014 Citigroup expects these expenses to grow to 13 billion US dollars. Earlier this week Citigroup downgraded Apple stock that gained much of investor’s attention.
The expectations over the rise of capital expenditures indicate some issues over the company’s supply chain in Asia. In addition to Apple the capital expenses of Taiwan’s Hon Hai Precision Company are estimated to drop to 60 trillion Taiwan dollars or 23%.
Apple Inc. (NASDAQ:AAPL) shares rose 2.90% to $533.90, Wal-Mart Stores, Inc.(NYSE:WMT) shares surged 0.43% to $69.50, Target Corporation(NYSE:TGT) share soared 1.95% to $62.28.