Apple shares had their worst week in 17 months amid mixed reviews on its slate of new iPhone and watch offerings and growing concern about muted demand for the new iPhone 8.
The shares lost nearly 5.2% last week, the biggest 5-day decline since the week ending April 29 2016. The drop also wiped more than $US43 billion off Apple’s market value. The shares are 7.4% from their peak of $US164.05 back on September 1.
This fall has gathered pace and investors should keep a close eye on it in case it is a sign of investor unease with the core tech stocks dragging Wall Street higher.
The question will be if this unease about the outlook for the major tech stock on Wall Street spreads to other leaders such as Facebook, Google or Netflix.
Next month’s third quarter reports might be a catalyst if some of them are less than what the market was expecting.
The shares were on the backfoot last week after the company admitted to a glitch on its new iWatch and reviewers complained that the iPhone 8 offered just a minor upgrade to the iPhone 7.
Analysts reckon demand for the phone is will be weaker as customers hold out for the premium iPhone X, which is due out in early November.
Apple shares are down 6% from their close before Apple’s September 12 launch of the model 8, the X, the new watch and Apple TV.
The shares are also down 7.4% for the month of September and on track for their worst monthly performance since April 2016.
By way of comparison, the Dow is up 1.8% so far this month with a week to go.
