- Apple products are overpriced and not aligned with the market (30-40% price increase on most hardware products in 2018)
- There are many better or equal phones for 40-50% less (its important since iPhone is a significant portion of Apple’s revenue)
- If iPhones dont sell well, the service revenue from App store will start to decrease too
- Apple doesn’t innovate enough to justify price increases or entice yearly iPhone updates
- Apple as a company does not diversify their business — I say at least 50% of company’s market cap is tied to iPhone
- Apple is currently passing on too many innovations like 5G, fast charging, better cameras, better screens and others
- They try to be industry leaders by changing the wrong things (why get rid of the headphone jack, home button and etc.)
- They are outright greedy by charging unreasonable prices in App store. They still try to charge companies 30% for transactions from apps that were downloaded through App store. For example, they tried to charge Wechat 30% transaction fee for people sending money through the app. That’s just an outright greed.
- Phone market is maturing and market saturation is increasing. Once again, Apple is iPhone and iPhone is Apple.
- Apple charges $1,500 for top of the line iPhone but comes without fast charger and Bluetooth headphones?
These are just a few thing I, personally perceive as a significant factors driving current and future decline in Apple’s stock price.
One more quick note, I have been shorting Apple stock for past 3-4 months. I put my money where my mouth is…:)