Apple Troubles

"Yesterday, Apple's stock price took a huge hit based on their revised growth estimates, and their weak outlook in a poor US economy. Apple relies on a strong medium to high end consumer market to profit from their notebook and desktop lines. Though this gives them strong control in a niche market, this surely will hurt them at a time when discretionary spending will go down. As the phone market gets more and more saturated iPhone sales will slow hurting Apple's bottom line. Apple is severely lacking an enterprise business and they are not able to sell notebooks to businesses due to their costs and that they are not universally compatible.

People who don't see Apples niche market as a weakness do not understand the tech industry. In the US growth has slowed for these companies and they rely on emerging market growth to pick up the slack. For an emerging market, Apple's products are over-valued and frankly people in emerging markets are not willing to pay so much for a system that they probably don't need. Companies like HP and Lenovo which have low-end machines are dominant in this market; therefore, enabling them to survive through tough economic times. The second problem, relating to Apple's lack of exposure in a commercial environment, deprives them from crucial services revenue during an economic contraction. The few businesses that do use Apple products internally are less likely to upgrade or replace any hardware."