Thursday, May 12, 2016

Apple's Stocks Fall, Again, Since 2015, and Another Company's Stocks Surpass Their's



Image result for apple stock drop
Apple which is worth $494.8 billion dropped to the second richest company after Alphabet which is the holding company for Google and its subsidiaries.   Alphabet is worth $499.9 billion. This is the second time this year Alphabet has surpassed Apple in its stocks. Apple lost $275 billion dollars in its market value since their peak last year. Apple's lose of revenue is mostly due to a shrink in the demand for their products. They have not been vary innovative for a while and the company is running out of new ideas for their products. Not only has Apple faced a lot of difficulty gaining revenue lately, but they also have to compete with cheaper Asian phones that run on the Android operating system. Not only have are consumers becoming more and more disinterested with Apple's products, but many investors have showed they are also becoming less interested with their products, too, because many of them are lowering their target prices and are not willing to invest as much money in the company as they initially would have. Aside from just created better, more innovative products, I think Apple needs to find away to make their products cheaper for overseas countries such as India. I, in fact, talked about the difference between the price of the iPhone in America versus the price of the iPhone in India. The 6S costs $960 in India compared to being about $649 in America. Anyway, if, even American consumers are not willing to buy a $650 smartphone, then Apple needs to, seriously, make their products cheaper. Remember, an iPhone, after all, only costs about $5 to make.  I do not exactly know why Alphabet is surpassing Apple in stocks. The most logical explanation I have is nobody can get enough of Google. Google is just, well,... Google and is getting even bigger. I like to think that Alphabet owns most of the internet from Google, Youtube, Google Scholar, the Android operating system, Gmail, and ,probably, more companies than I can count easily or maybe I'm just overreacting a bit. I hope Apple steps up its game to make its way back to the top of the stocks list. Apple should make sure its next products such as iPhone 7 are interesting and innovative and not just copies of some of their previous products. As my last word I will comment about how I think Alphabet is a dumb name for Google and the companies it owns.

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