This is a Guest Post by AK of Fallible
What happened in the Apple’s (AAPL) recent earnings report? Why did investors knock down it’s stock price? That’s what we’re going to talk about in today’s video.
Since earnings, price has fallen over 15%. It has also broken through a significant support level.
Investors are angry that iPhone sales are stagnant and on top of that, Apple is going to stop publishing their unit sales numbers in 2019, so we won’t even be able to see how many iPhones they’re selling. A lot of people think this is a cover up, they’re trying to hide bad growth numbers by not showing them.
But the truth is iphone sales have been stagnant for a few years now. And revenue has actually grown anyway. And that’s because Apple keeps raising the price on these things, betting that people will pay up. And it’s a good bet because they do keep paying up.
But Apple is taking the exclusivity of their little club one step further by transitioning to a full services company.
If you’re a apple customer, think about all the services you’re already getting. Apple music, apple pay, apple app store, iCloud, Apple TV and the coming AppleFlix. You are deep deep into the apple system. And on top of that they want to get you even more wrapped up by getting you hooked into live events. They’ve got these free events at apple stores, called “today at apple” where they teach creators new skills like making movies, music, how to take a selfie, and stuff like that.
They’re moving forward in creating an entire community, like a new kind of social network where people actually meet up in person at the stores and talk to each other face to face.