The continued drop in Apple (NASDAQ:AAPL) share price has meant that its stock temporarily crossed a key mark on Wednesday, falling more than 20 percent from its September record high to flirt with official bear-market territory. Apple was down at $556.04, a four-month low, in intraday trading on Wednesday to mark a 21 percent decline from the record closing high of $702.10 on September 19. It eventually ended the day down 3.83 percent at $558, 19.28 percent below the high mark.
Apple’s stock reached those peaks less than two months ago as the company released its sixth-generation iPhone, but supply constraints have continued plaguing the new device and have now also hit hit the company’s new tablet — the iPad mini. On Wednesday, the chairman of Hon Hai Precision Industry, Apple’s main manufacturer, told reporters that production of the new smartphone was still an issue and that it was shipping “far fewer” iPhones than requested. That promptly led to investors displaying a loss in confidence.
Our 20-page proprietary analysis of Apple’s stock is ready. Click here and to get your Cheat Sheet report now!
Worries have also been exacerbated by the announcement by the company last week that longtime iOS chief Scott Forstall and new retail head John Browett would leave. To make matters worse, according to report released by IDC on Monday, Apple’s share of the tablet market dropped from 59.7 percent to 50.4 percent during the third quarter. The iPad has been a dominant winner for the company in the tablet market, but new challengers from Google (NASDAQ:GOOG) and Amazon (NASDAQ:AMZN) have emerged at very competitive prices. Apple also lost a court battle late on Tuesday, with a federal jury in Texas deciding that its FaceTime technology infringes on the patent technology of VirnetX (AMEX:VHC) and ordering payment of damages worth $368 million.
Apple shares are still up more than 35 percent this year.
But Apple wasn’t the only stock leaking value on Wednesday, with the Dow dropping 300 points in total.