Here is a list of things that I think will drive Apple’s market valuation down a lot more (does not include upcoming global recession)

by SlovakPotato007

 

  1. Apple products are overpriced and not aligned with the market (30-40% price increase on most hardware products in 2018)
  2. There are many better or equal phones for 40-50% less (its important since iPhone is a significant portion of Apple’s revenue)
  3. If iPhones dont sell well, the service revenue from App store will start to decrease too
  4. Apple doesn’t innovate enough to justify price increases or entice yearly iPhone updates
  5. Apple as a company does not diversify their business — I say at least 50% of company’s market cap is tied to iPhone
  6. Apple is currently passing on too many innovations like 5G, fast charging, better cameras, better screens and others
  7. They try to be industry leaders by changing the wrong things (why get rid of the headphone jack, home button and etc.)
  8. 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.
  9. Phone market is maturing and market saturation is increasing. Once again, Apple is iPhone and iPhone is Apple.
  10. Apple charges $1,500 for top of the line iPhone but comes without fast charger and Bluetooth headphones?
READ  Markowski: Sentiment Anomalies & Market Downturns
READ  If Joe Biden Won, Why Isn’t China’s Stock Market Exploding Higher?

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…:)