Apple May Lose Most Admired Company Tag as Share Prices Plummet 37%
By Vittorio Hernandez | February 28, 2013 2:10 PM EST
Apple Chief Executive Officer Tim Cook admitted to shareholders at the company's yearly meeting on Wednesday that he didn't like the downward trajectory of the company's share prices. He was responding to alarm by shareholders that Apple stocks are down 37 per cent since September 2012.
An Apple (NASDAQ: AAPL) share traded $444.57 on Wednesday, down by $4.40 or 98 per cent from the previous day's trading.
Valuewalk.com cited an article by Forbes contributor Brad Chases that while Apple would definitely not disappear anytime, its "once-invincible brand is teetering on the edge of a long, steady drop."
Forbes is scheduled to release its 2013 annual rankings this week, and Mr Chases expects Apple to be toppled from the top spot.
The decline in Apple's value came just over a year after the death of founder Steve Jobs and rival Samsung's eating into its market in the smartphone category. The tough competition has resulted in several ongoing legal battles in different countries.
Mr Chases attributed the plummeting value of Apple to device glitches, missed deadlines and high prices.
Apple, however, is far from bankruptcy as it has a $137 billion cash hoard which shareholders want to be returned to them in the form of dividends. However, Apple proposed that the cash be issued instead as preferred shares. A judge favoured the cash dividend.
Mr Cook assured shareholders that Apple is in very active discussions what to do with the cash stockpile.
The stock value decline has so far wiped off about $240 billion for shareholders' wealth. To reverse the downward movement of Apple stock, Mr Cook said the tech giant will roll out soon Apple products but did not elaborate on what devices will be launched soon.
Analysts are recommending a sell for Apple stocks.
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