rotten apple Apple No Longer King of the Hill

Since September 2012 Apple has lost 37% of their value.  Once reigning as the world’s most valuable corporation, Exxon just recently surpassed them attaining the #1 spot, once again.

Apple Corporation’s future may be far from over, but it seems that the highly competitive market has taken a big bite out of their fruit.  Apple’s stock has fallen some 37% since last September 2012, leaving Exxon as the most valuable company, at least for the time being.  Exxon reached this spot on Friday when Apple’s value fell 2.32% to $440.04 U.S.  Currently Exxon is the largest investor owned company on the planet and currently has a market capitalization of 418 billion dollars U.S.

Apple’s plummeting stock value is not a surprise for many analysts and investment firms.  In December 2012 Pacific Crest Securities, which is a leading investment firm, accurately predicted that Apple’s value would drop in value for 2013.  The firm based their opinion that Apple reached their saturation point in the market for their only smartphone, which is the iPhone. 

When news of Apple’s order limits became public in the second week in January 2012, investors quickly began to sell off shares and share value then dropped 3.57% or down to $501.75 (U.S.). Now, some 2 weeks later, the company has dropped another 60 dollars per share, which may cause more investor sell off.

Most recently Samsung has been Apple’s chief rival, overtaking the iPhone with their Galaxy III smartphone, which is now the most popular and best-selling smartphone on the market.  Some predictions state that Samsung could sell as many as 290-320 million smartphones in 2013.

On a more positive note, there has been some recent news coming out of Apple when it was revealed that the company spent approximately 1 billion U.S. dollars in research and development. This became known when Apple’s 10-Q filing became public this past Thursday.  Apple noted that spending in their research and development rose 33% in the quarter ending in December 2012, which comes to 252 million more dollars, amounting to over 1 billion invested.

These recent R&D expenditures coming from APPLE may bring a more positive outlook with investors, but it won’t last long if Apple does not materialize something from it all.  It has been nearly three years since Apple released of any kind of new product, which was the iPad in 2010.  At this rate of development Apple cannot remain as a contender in this highly competitive market.