Apple shares have dipped to 2011 numbers after losing $20 in value during early morning Wednesday trading. The company’s shares are now sitting close to the $400 mark on the NASDAQ exchange.
At one point during trading, Apple shares dipped below $400 to hit a two year low of $399.58.
While the exact cause of Apple shares declining is not known, Barron’s suggests that a poor financial forecast from Cirrus Logic may be to blamed. Cirrus Logic is Apple’s largest customer for audio chips. Cirrus is predicting quarterly revenue of $150-$170 million. Analysts had predicted that Cirrus Logic would reach a quarterly level of $167 million. Cirrus Logic is now predicting a current quarter of $207 million, again below the $210 million predicted by market analysts.
Following Cirrus Logic’s poor performance, Needham & Co. analyst Vernon Essi Jr. switched the company’s rating from a “Strong Buy” to a “Buy.” According to Essi Jr., the company’s slipping stock prices are to be blamed on “aggressively building to what now looks like an optimistic customer forecast.”
Essi Jr. also blames Apple for “losing its mobility mojo” as production numbers are rumored to be slipping. Essie writes:
“The guide indicates that the recent fears of Apple’s lackluster iPhone demand in 2013 are warranted, and reflect units that are more likely in the 55M range for 1H2013 vs. Street forecasts that are above 60M units.”
Customers and analysts have questioned Apple’s recent mobile offerings. The Apple iPhone 5 offered only modest technology improvements over the Apple iPhone 4S, and the upcoming iPhone 5S is believed to focus more on software than new hardware features.
Apple has also failed to announce and launch a new product since October 2012 when it began to sell the Apple iPad Mini.
In the meantime, Apple continues to experience mounting competition from Samsung, HTC, and other mobile device manufacturers. The company’s biggest product launches for 2013 appear to be rehashed upgrades to previously available devices.
Do you think Apple shares will continue to decline, or will the upcoming iWatch, iRadio, and Apple TV along with a low-cost iPhone help shares rebound?