How the crisis also hits iPhone sales

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Apple is one of the most successful companies in the US and in the Smartphone industry at large. The company worth billions of dollars has been able to make great profits especially with their latest iPhone 5 release which came just after its founder’s death Steve Jobs. Nevertheless, the company isn’t as strong as it’s perceived and sometimes it’s also hit by crisis.  In January 2013, the company was reported that nearly $50 billion was wiped off the companies value after it’s stocks dropped with a 3.2% margin which is one of the biggest ever witnessed in a day.

Though the company had made a whooping $55 billion in quarterly profits after the release of iPhone 5, it seems that the company is having problems and may end up being a victim of its own success according to some specialists. Earlier in January 2013, the company’s shares had also fallen in other parts of the world such as Asia. The company was unable to increase its profits margins as it’s used to each year. According to apple’s spokesperson, the company had made the best part of their profits between October and December 2012 but insists that this wasn’t heir target.

The Free iPhone 6 is expected to be rereleased anywhere before June in order to counter attack Nokia’s release of its new product the Nokia Lumia. Apple is experiencing lots of competition from other companies that are producing Smartphones such as Samsung and Nokia. The main reason as to why apple is experiencing these problems is because their main aim is to sell to the high end market leaving out the lower class where Samsung and Nokia are greatly playing part. Though apple is seen as undergoing a few crisis, some specialists insist that apple is still a successful company and there isn’t any significant threat, only that the investors were overambitious.

 

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