Apple Stock Down 6.4% After WWDC 23 AnnouncementLarge Caps 1 reply 1 like 0 votes 1378 views
Apple's stock price fell 6.46% on Tuesday after the company announced a number of new products and services at its annual WWDC 2023 conference. Some experts believe that the sell-off was due to the high price of the new products, such as the $3,499 Vision Pro AR headset. Others believe that investors were disappointed by the lack of major new announcements, such as a new iPhone or Apple Watch. It's also possible that the sell-off was simply a technical correction after Apple's stock price had risen sharply in recent months.
Only time will tell if the sell-off is a sign of things to come for Apple's stock. However, the company remains one of the most valuable in the world, and its long-term prospects remain bright.
There are a few possible reasons for this decline:
First, some investors may have been disappointed by the lack of major new product announcements. Apple did unveil a new 15-inch MacBook Air with an M2 chip.
Second, some investors may have been concerned about the company's slowing growth. Apple's revenue growth has been slowing in recent quarters, and the company's forecast for the current quarter was below analyst expectations. Apple has not reported good earnings for this quarter of 2023. In fact, the company reported its first quarterly revenue decline in nearly two years. Apple's revenue for the quarter was $97.3 billion, down 5.6% from the same quarter last year. The company's earnings per share were $1.52, down 10% from the same quarter last year.
There are a few reasons for Apple's disappointing earnings. First, the company is facing increasing competition from rivals like Samsung and Google. Second, the global economy is slowing down, which is hurting demand for Apple's products. Third, Apple is facing supply chain constraints, which are making it difficult for the company to meet demand for its products.
Despite its disappointing earnings, Apple is still a very profitable company. The company has a strong balance sheet and a large cash reserve. Apple is also investing heavily in new products and services, which could help the company grow in the long term.
Finally, some investors may have been selling Apple stock to raise money to buy shares of other companies that reported strong earnings results in the latest reporting period.
It is too early to say whether Apple's stock price will continue to decline. However, the company's management team has a good track record of executing on its plans, and I believe that Apple is still a good long-term investment, especially even with how the new Apple Vision Pro does paint a slight Black Mirror like dystopian reaction in its use. But we have to acknowledge that the company knows how to do hardware best after the first product is out.
The Apple WWDC 2023 YouTube video can be used to support these theories. For example, in the keynote address, we can see that the new Spatial computing platform of Apple Vision Pro that has been announced and has been in development for quite some time will actually release next year which can be due to the company facing “supply constraints” that are impacting its ability to meet demand for its products. This suggests that Apple's growth is being limited by factors outside its control.
In addition, Cook also said that the company is “investing heavily” in new products and services. This suggests that Apple is focused on the long term, and that it is willing to sacrifice short-term profits in order to grow its business in the future.
Overall, from Apple WWDC 2023 it suggests that the company is facing some challenges, but that it is still committed to growing its business in the long term with AR as their new visionary spatial computing platform with capabilities that as Tim Cook Said "We believe Apple Vision Pro is a revolutionary product with the performance immersion and capability that only Apple can deliver" as its newest horizon to explore and pioneer the “APPLE WAY”.
Let's discuss this down below and see what the future of this tech giant firing on all cylinders looks like. Best of all, what are “your” thoughts on the new Apple Vision Pro, and did the announcement of the Mac Pro live up to your expectations?