Apple accumulates a huge amount of revenues along with the kind of profit margins, which other organizations all around will be jealous of. It also has a stock market valuation of $1 trillion. In spite of all these obvious strong points, Apple told its investors on Thursday that they would stop reporting their numbers related to the sale of iPhones. The sale figures tend to be the focal point towards understanding the performance of their largest chunk of business. The company even mentioned that they would not reveal exactly how many iPhones, iPads and Mac computers they managed to sell every quarter. The problem lies elsewhere. Without the data related to the number of units sold for different items, investors will not manage to track the average selling price of iPhones. This is quite a crucial number, which helps to assess if the consumers are not willing to pay for the high-priced phones of Apple.
Now this particular decision, to go with the disappointing forecast for the sales of this particular quarter, helped to drive Apple’s stock price down in excess of 7% on Friday. This move indeed seemed to weigh heavily on the overall stock market. For most of the year, the investors looked to disregard the warning signs, which were lurking over the big technology companies and thus pushed their stock prices higher up. The plunge in the previous month, the downfall of the stock price to 26 percent for Netflix from the high and the fact that stock price of Amazon is also 19 percent off, has most probably made investors more aware of the kind of problems, which these companies face up in their core business segments.
During the latest quarter, the sales of iPhones made up almost 60% of Apple’s revenues. Now, the decision to stop revealing the details regarding sales of iPhones comes up at a crucial juncture for smartphones. Sales of smartphones in more developed countries are getting slowed down as consumers are managing to hold onto their phones for a longer period of time. Though there is a growth in sales in emerging markets like India, the kind of handsets dominating these markets are really cheap.
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