Being a long term Apple supporter has become more testing in the last six months. Indeed, I sold half my shareholding sometime ago as my nerves reached fraying point. From a high of $705 in Sept 12, Apple shares yesterday traded at $398 at one point before closing at $402. In the process they relinquished the mantle of ‘most valuable US company’ back to Exxon. Yesterday’s fall was occasioned by a profits warning at Cirrus Logic– a supplier making c90% of its revenues from Apple.
What really spooks me is the total absence of product news from Apple for months. We normally get some new product in March/April – like a new iPad. But nothing. Not even a temptingly obscure invite! As we have said before, Apple doesn't seem 'cool' anymore - they certainly don't feel 'exciting' either. Apple’s quarterly earnings are due next Tuesday and the first YOY profits decline in some 10 years is forecast.
Apple could surprise us all with some wondrous new product genre or a big return of cash to shareholders or even a big acquisition. But until then even the most bullish of Apple supporters feels bearish.