Are Apple's glory days over?
iPhone producer Apple's share prices have plummeted after the US company issued a profit warning. Apple is blaming poor Christmas trade and declining sales in China for the downturn. Commentators see this as a symptom of a decisive change in trend.
Company falling by the wayside
The profits are shrinking because of the trade war and Apple's high prices, writes US correspondent and China expert Federico Rampini in La Repubblica:
“The logic of the communicating tubes that regulate the global economy explains the decline in sales and profits. In many respects Donald Trump is winning the trial of strength with Xi Jinping. The result is that the Chinese locomotive is slowing down, exports from the 'factory of the world' are declining, production is dropping, and consumers in the world's most populous country are worried and spending less. The victims of this are expensive smartphones 'designed in California' (but put together in China by Foxconn in Shenzhen). ... [Apple boss] Cook realised too late that his pricing policy is no longer working.”
The end of a chapter
The long and uncontested reign of the iPhone has come to an end, Helsingin Sanomat believes:
“The historical profit warning shows that a chapter in Apple's history is probably coming to an end. According to Strategy Analytics, Chinese company Huawei supplanted Apple as the world's second-largest smartphone maker last summer. On the other hand, no other manufacturer has yet been able to develop a pioneering mobile phone like Apple did ten years ago. ... Since October, Apple shares have lost just under a third of their value. This shows that at least some investors see the company facing a gloomier future than before.”
Price war increasingly sets the trend
Apple has clearly passed its peak on the stock markets, L'Echo believes:
“Until now the company had been able to persuade consumers that its iPhones were worth the price. But in the fierce competition that reins in this sector, the price increasingly outweighs the technology. And the stock markets have also picked up on this. In 2018 Apple led the S&P 500 for nine months before that trend underwent a brutal reversalj, prompting the conclusion that the one trillion dollar mark represents the highest possible stock market value for Apple and is now a thing of the past.”