Apple loses world's biggest company title as shares hit 18-month low

[Joe Higashi]

Apple loses world's biggest company title as shares hit 18-month low

Apple shares have hit their lowest levels in a year and half, after a supplier hinted at a slowdown in iPhone and iPad production.

The decline means Apple has lost its position as the world's most valuable publicly traded company to Exxon Mobil Photo: AFP

By Andrew Trotman, and agencies
5:48PM BST 17 Apr 2013

The stock was down $20.37, or 4.8pc, at $405.87 in midday trading. Apple's shares hit $403.67 earlier, the lowest level since December 2011.

The decline means Apple has - for now - lost its position as the world's most valuable publicly traded company to Exxon Mobil. Apple has a market capitalisation of $378bn compared with Exxon's $383bn.

Late Tuesday, Cirrus Logic, which supplies audio chips for the iPhone and iPad, said sales of a particular chip are slowing down as a customer moves to a newer component.

Analyst Peter Misek at Jefferies & Co. said Cirrus' news suggests a big decline in Apple sales in the April to June period. That supports his view that Apple is unlikely to launch a new iPad Mini in the quarter, and that the next version of the full-size iPad may launch late in the quarter rather than early. In the last three years, Apple has launched a new iPad in March or April.

Apple does not comment on its suppliers' announcements or its product plans. It is set to report results for the January to March quarter on Tuesday.

The latest decline in the stock comes after a bruising winter for Apple. The company's stock is down 42pc from its all-time high of $705.07, hit on September 21 when the iPhone 5 went on sale.

Investors have concluded that with the death of co-founder Steve Jobs, Apple may never again create another ground-breaking product of the magnitude of the iPhone or iPad.

 

[Merl Haggard]

Apple has fallen below the $400 and now trading at $391.

 

[Merl Haggard]

Since the financial crisis, the old adages of a positive “January effect” and to “sell in May and stay away” have proven curiously useful. Equities have suffered significant setbacks from mid-April to June in each of the past three years.

Investors are understandably nervous with the S&P 500 faltering near all-time highs, especially while key economic data appear to be softening. Moderation in growth could spook the markets that a repeat of the past three years may unfold.

In the near term, whether the underlying positive macro outlook and central bank monetary accommodation will beat the more immediate seasonal suspicion is in question.