Analysts are divided as to the reason behind the stock’s sharp decline. Some point to reports that Apple is quickly ceding ground to Android powered devices in the tablet market, while others are saying the recent announcement of China Mobile’s — China’s largest mobile carrier and a telcom Apple does not have an agreement with yet — decision to carry the Windows 8 powered Nokia Lumia 920T as a reason for the stock’s slump.
A few are pointing to a post by the sometimes reliable Digitimes that says Apple’s orders to parts suppliers in the quarter were down by 20 percent.
While Apple’s stock is still up nearly 240 percent year-over-year, starting 2012 at $411.13, the stock market blogosphere is abuzz with speculation that this is the beginning of a great decline for the once stoic APPL.
At Seeking Alpha, contributor David Alton Clark points out that a ‘death cross’ — a cross shape trend in trading patterns that signifies an upcoming bear market — is imminent for Apple because of two quarters of missed earnings and large firms increasing their stock’s margin requirements for their clients — the amount a person must deposit in cash before trading a stock with credit or short selling.
Many commenters on Seeking Alpha and other financial blogs noted that Apple has hit a ‘death cross’ five times since the start of the decade. Historically, post-’death cross’, Apple’s stock has had a slight downward correction then has returned to year-over-year growth.