Apple (NASDAQ:AAPL) has had its worst first half since 2008 during the recession. This month, shares dropped four percent, capping off an 8 percent decline from their $363.13 peak in mid-February.
Concern from investors can be attributed to several key factors. For starters, Apple (NASDAQ:AAPL) hasn’t come out with any big announcements or products recently. It has been over a year since the debut of the iPad and the next generation of the iPhone isn’t due out until September.
The declining health of Apple CEO Steve Jobs has also been a source of anxiety for investors. His creativity and leadership have propelled Apple over the years. Will the company be able to maintain its success, given his absence?
Finally, investors have cited competition from Google (NASDAQ:GOOG), as a reason for apprehension. According to a report from research firm IDC, Android is projected to account for 38.9 percent of the global market in 2011, compared with 18.2 percent for Apple. Additionally, Android accounts for 49.5 percent of the domestic market, although Apple has been rapidly gaining since Verizon (NYSE:VZ) added the iPhone. Since December, Apple’s market share has risen to 29.5 percent from 17.2 percent in December.
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On the whole, this year has been a difficult one for technology conglomerates (NYSE:XLK). Google is down 16 percent and Microsoft (NASDAQ:MSFT) has slipped by 8.2 percent. Apple has been able to consistently outperform the rest. Despite the trepidation of some investors, analysts have projected that Apple’s shares (NASDAQ:AAPL) should climb given the company’s huge profit margin and the impending release of the new iPhone 5.