World wide, the demand for expensive smart phones has declined. In China, local brands at lower prices have picked up significant market share. The political turmoil, protectionism, doesn't help. As Cook pointed out, it is less expensive to upgrade a battery instead of a phone.
Still much of the market failure is due to a panic, not actuality. Apple's guidance predicts a drop of 4% of iPhone revenues, but an increase of other revenues by 27%. Instead of $96bil in revenues for the December quarter, the company will realize $86bil in revenues. We should all have such troubles.
Numbers that do no warrant the equity price drop.
Psychology of the market has dictated the panic. The same analysts who 3 months ago touted Apple as a sure win are now certain once again Apple is doomed. I'm putting my money where my mouth and buying more Apple equities
The market was over heated, over exuberant, and the up cycle lasted far too long. This was inevitable for one reason or another. The hedgers, the traders took a bath, and not just from Apple. This is healthy for the long run. The last time Apple behaved like this, the stock increased 75% within two years. Similarly for the rest of the market.
The company, like most American companies, is not sitting back on its laurels. It's r&d expenditures are massive, and as new products show (the watch, AirPods) more variety of products make the Beats go on when combined. As apps for the health industry increase and improve, their use with the watch and iOS devices also mean more sales, and build out of Apple's cloud business. Same with Apple music and whatever it does for its share of the video streaming business.The company is still operating on all cylinders, and the analysts don't know diddly.
Apple is the obvious example, but the rest of the marketplace with a few minor exceptions is the same.
Trump's antics may actually been a good thing, forcing a reevaluation and reestablishment of a base to grow from. We make money when we buy, not when we sell. This is the time to buy and accumulate. This is not said in defense of Trump, but about how the markets function. If it wasn't him, something else would have accomplished the same.
Take a good look at the markets. There is no shortage of buyers for most of the equities that have seen price drops.
