Are falling Apple shares indicative of a decline for 2016?

Business man drawing financial chart

Rumours are abound that Apple may not have a great year, as their stock value has dropped below $100 for the first time since 2014.

Last year was a great year for the iPhone King, with a high in May 2015 of £132.54 per Apple stock. January 2016, however, saw the price drop to $96.96 for each share in the tech giant, a worrying dip which shakes the company’s visage of an unstoppable technology titan.

63% of Apple’s revenue is reported to come from the iPhones. This is a huge portion, and makes Apple reliant on iPhone sales which, when compared to the 13% revenue from the Mac and 8% from the iPad, puts into perspective how much the company rely on its iconic line of smartphones. Apple still haven’t revealed how much its iWatch has generated for the company.

One of the theories behind the drop in share prices is related to this reliance on the iPhone. It is possible that the phones have suffered a decline in sales.

Alternatively, it could be because the rate of sales in China is a vulnerability. China makes up for a huge portion of the company’s overall sales, and so if China begins to suffer, Apple will too. Daniel Ives of FBR Capital told the BBC that “if China falls, so does Apple.” For their part, Apple have said that they are not worried, and that China is still buying plenty of luxury gadgets.

2016 may have a grim series of headlines for the company, although they may well pull something massive out the bag, and prove again why they are such a controlling giant in the market. Rumours of an iCar in development are rife, and it would be surprising if the company let itself get anywhere near the slippery slope to failure.

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