The manufacturer of iPhones and Mac computers, Apple Inc dismayed Wall Street investors on Tuesday when shares in the exceedingly stable and world’s leading technology company fell over 5 percent of their value, the second quarterly fall in under one year.
The disheartening results show that even the usually rock-solid Apple brand is becoming vulnerable to the inevitable product cycles and economic pressures that its rivals have always been subjected to.
Tim Cook, who has been in charge at Apple for almost a year, cited two reasons for the poor stock market performance. Consumers in Western Europe are holding back their spending as they ride out the storm of uncertainty in their economies; and a lagging of demand as consumers wait it out until the much anticipated new iPhone is released this coming fall.
"Clearly it was a disappointment," said Channing Smith, Co-Manager of Capital Advisors Growth Fund. "We expected a lot of consumers will probably delay their upgrade and their purchases until the iPhone 5 comes out. We saw a similar trend occur last year with the iPhone 4S."
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