Apple’s share price took a 2.5 per cent hit on growing investor concerns about its growth in China, in a glum Monday for tech stocks that also saw Twitter fall to a new low.
Apple’s latest declines extend a poor run that began after it reported its latest earnings two weeks ago, which failed to match Wall Street’s high expectations.
Canalyst, the research group, said on Monday that Apple had lost its position atop the Chinese smartphone market to local upstart Xiaomi in the second quarter.
Xiaomi, sometimes described as the Chinese Apple due to its sleek iPhone-style designs, won 15.9 per cent of the market with a resurgent Huawei “hot on its heels” at 15.7 per cent, Canalys said, while third-placed Apple maintained its lead over Samsung. “Stagnant” quarter-on-quarter growth is making for “intense” competition in China, its analysts wrote.
Shares in Apple closed at $118.19, their lowest point since January and 10 per cent below their pre-earnings high of $133. Traders noted that stock in the world’s most valuable company is now below its 200-day moving average, a technical metric that sometimes acts as a support for a share price, for the first time since September 2013.
Some Apple watchers fear a repeat of its late 2012 slump, which saw the stock retreat from $100 to $55 (after adjusting for last year’s stock split) over seven months.
Tim Cook, Apple’s chief executive, said last month he remains “extremely bullish on China” despite what he described as “speed bumps” from the stock market correction there.
“The rise of the middle class there is continuing, and it is transforming China,” he told analysts on the earnings call. “I think we would be foolish to change our plans.”
Closer to home, Apple also showed confidence in its future growth by purchasing a huge new plot of land near San Jose airport in Silicon Valley. The $138m, 43-acre real estate deal was reported by Silicon Valley Business Journal on Monday and marks Apple’s latest expansion in the Bay Area after also reportedly securing property in San Francisco for the first time.
在美国，苹果也对未来的增长显示出信心。该公司在位于硅谷圣何塞机场附近购置了大块新地。《硅谷商业日报》(Silicon Valley Business Journal)周一报道了这笔1.38亿美元的43公顷土地交易，它标志着苹果在旧金山湾区的最新扩张。