Published on October 29th, 2012 | by Alex Veeneman0
Apple Loses Market Value in iPhone 5
Alex Veeneman, Opinions Editor
Photo courtesy of sxc.hu.
The technology company Apple is said to have lost $76 billion in market value since the release of the iPhone 5 in September.
The market value decline is cited by concerns over the supply of the new device and concerns over strikes at the Chinese manufacturer Foxconn, which Apple has been working closely with, according to a report from the technology news site Mashable.
The report adds that Apple’s company value fell below $600 billion on Oct. 8 for the first time in two months because of the concerns.
A call to Apple seeking comment on the report was not returned.
Dr. Ray Klump, chairman of Lewis’ Math and Computer Science departments, says Apple has had similar issues with supply in the past, but this situation is unique.
“What is different this time may be that the willingness to wait for the supply constraints to be remedied isn’t as unquestionable as it used to be, that people might be inclined to wait for the next iPhone or one of the Android phones if the initial supply wave isn’t sufficient,” Klump said. “When Apple is perceived as ‘the thing to have’, a slowdown in the supplier pipeline isn’t that big a deal.”
Klump added, however, that the issue came with the lack of new features compared to others in the iPhone series.
“When the notion that they aren’t really introducing anything new with this phone starts to convince people that maybe there is some truth to that, not capitalizing on the ‘gotta have it’ initial response becomes a serious issue for Apple,” said Klump.
Apple released the new iPhone Sept. 21.