Apple (Nasdaq:AAPL) has been an incredibly interesting stock to watch of late. The world’s largest technology company is in a bit of a pickle at the moment. Unfortunately, sales of its flagship product haven’t gone as expected, leading to massive declines on the stock. While we’ve seen a ton of downward movement lately, it seems as though we are going to see more, quite a bit more. Today, we’ll talk about why Apple is having such a hard time, what we’ve seen from the stock recently, what we can expect to see moving forward, and how binary options traders can take advantage of the trends.
Why Apple Is Having Such A Hard Time
Apple is a company that creates several products. However, it can be argued that the majority of their business is heavily dependent on a single product. That product is the iPhone. Unfortunately however, iPhone sales are starting to fall apart. The reality is that Apple has run into a bit of an issue with regard to their flagship product, and that issue is three-fold…
Market Saturation – Apple has done an incredibly good job saturating the cell phone market with iPhones. While this was a great thing during the growth process, the company has become a victim of its own success. After all, when you set the bar as high as you can, it becomes incredibly difficult to raise it.
Cost – iPhones are one of the most expensive smartphones on the market. While this worked for Apple in the past, new, lower cost options are doing just about everything the iPhone can do, and the competition is killing sales. At the moment, poor economic conditions are also making it so that consumers spend less money on smartphones. All in all, the price point for the iPhone is a bit too high at the moment.
Dumb Phones – Flip phones, brick phones, mom phones, grandpa phones – whatever you want to call them, they are becoming popular again. The truth is that smartphones are not only expensive, they’re fragile. As a result, consumers are opting for lower cost, higher durability options. In fact, last year, Americans purchased 1.7 million more dumb phones than in the year before, bringing the total to 24 million. As dumb phones come back into style, fewer and fewer people will likely be willing to shell out the cold hard cash for an iPhone.
Leave A Comment