It’s bad news for Apple stock this morning, as pre-market trading saw shares in the Cupertino, California-based company fall below $100 for the first time in some months.
The fall comes amid a wider Dow Jones downturn; after half an hour of trading, Wall Street was down four percent (having earlier fallen six percent, according to the BBC). On the other side of the Atlantic, London’s FTSE 100 was also down 4.8 percent in afternoon trading. Of course, China’s economic woes have triggered today’s downturn in the western stock exchanges; the yuan, China’s currency, was recently devalued to its lowest rate against the U.S. dollar in almost three years, and in the East, stock exchanges are experiencing recurrent falls.
Now, Apple stock is feeling the effect of this downturn, and shares indeed fell to under $100 apiece in today’s trading. The last time Apple shares fell to below $100 was in October 2014, and this was four months after the stock’s seven-for-one split, in June 2014. Since, APPL has been trading comfortably at well over $100 per share.
Later this year, Apple is set to release a slew of new products, including revamped hardware and software. Two updated iPhone handsets, new iPads (including a 12-inch “iPad Pro”), and improved desktop and mobile software are all incoming from September. As such, Apple stock would naturally be expected to receive a boost (as per previous years). This new dip in APPL, then, could provide investors with a chance to pick up shares in Apple for a reduced price before making a profit through future trading.
As you know, we don’t give mid-quarter updates and we rarely comment on moves in Apple stock. But I know your question is on the minds of many investors.
I get updates on our performance in China every day, including this morning, and I can tell you that we have continued to experience strong growth for our business in China through July and August. Growth in iPhone activations has actually accelerated over the past few weeks, and we have had the best performance of the year for the App Store in China during the last 2 weeks.
Obviously I can’t predict the future, but our performance so far this quarter is reassuring. Additionally, I continue to believe that China represents an unprecedented opportunity over the long term as LTE penetration is very low and most importantly the growth of the middle class over the next several years will be huge.
We’ll keep you updated with further information on Apple’s stock as we receive it.