Apple Inc. (NASDAQ:AAPL) recently hit an all time high of $705 per share, as we reported here at ValueWalk. However, in the recent weeks, since that high, the stock has dropped nearly 10% in price. According to Roger Cheng, of CNET, the stock has fallen another 1.2% today, and is currently trading near $630 per share.
With the iPhone 5 launch already behind them, and the rumored iPad Mini, which is supposed to be revealed later this week, the stock seems to be slumping abnormally low. This is far from typical for Apple Inc. (NASDAQ:AAPL), especially considering it was anticipation of the iPhone 5 that drove the stock to its high water mark.
However, as Cheng points out, the Apple Inc. (NASDAQ:AAPL) tree may still be shaken by a fall off in demand for the iPhone 5. Although the sales numbers have been record breaking and impressive, demand could possibly slack off in coming months, due to the fact that Samsung, and others offer competition in the smartphone market, especially in the mid and low end. Many people fear that Google’s Android O.S. will take over the smartphone market in coming years, mainly due to the fact that so many companies manufacture handsets, which operate on the system.
The strikes and riots at Foxconn plants in China, which happen to be Apple Inc. (NASDAQ:AAPL)’s biggest iPhone 5 components producers, have also added fuel to the fire that seems to be burning the share price. Employees have accused Foxconn of mistreating them, providing poor working and living conditions, and overworking their employees. All of this has cast a bad light on Apple’s major supplier.
Fortune also suggests that hedge fund managers may be purposely discrediting Apple Inc. (NASDAQ:AAPL), in efforts to drive the price lower. The possibility of buying low, then holding on through the ride back up, to sell high, is definitely an attractive prospect for investors. The release of the iPad Mini is almost certain to boost the price again, and investors who follow the stock can easily see the opportunity here.
The iPad Mini could easily be Apple’s key product in the coming year. Although the iPad has a firm grip on the high end tablet market, the launch of the more affordable iPad Mini could expand Apple Inc. (NASDAQ:AAPL)’s coverage to the lower end of the market, and attract millions of new customers.
Whatever the outcome of the iPad Mini event, which many people believe will be held very soon, Apple’s stock is sure to bounce back from its drop in price. Investors should also remember that Apple Inc. (NASDAQ:AAPL) was trading more than $100 per share less than it is now, as recently as July of this year. The company is the strongest in its field, and will easily rebound on the back of its next product launch. It will be interesting to see what the company does in the coming weeks and months, especially with the Holiday season just around the corner.