Apple Inc. (NASDAQ:AAPL) share rates fell to the mid 520’s in trading early Friday as analysts circulated a new cache of rumors on which to blame the price drop. Some numbers crunchers are blaming a tapering of of “end-of-fiscal-cliff-euphoria” whereas others are considering a recent New York Times report that the end of offshore tax shelters for tech companies is nigh.
Apple has been the center of this ongoing probe, as 70 percent of its profits are allocated overseas to avoid domestic tax rates by shifting intellectual property and thereby profits to tax havens. Other firms on the list of inquiry include Google, Hewlett Packard, Microsoft and several biotechnology organizations.
The Times also reports that in a statement released Thursday Apple Inc. (NASDAQ:AAPL) released a statement calling the firm “one of the top corporate income taxpayers in the country, if not the largest.” The statement also said the company “conducted all of its business with the highest of ethical standards, complying with applicable laws and accounting rules.”
Other reasons analysts cite for the stock’s morning plunge are the looming debt ceiling, no real deal on the Waze front and a bearish report released by Deutsche Bank pertaining to iPhone and iPad sales.
Another reason that could be plaguing the stock in trading as of Friday are is recent speculation released by Neil Mawston of Strategy Analytics that Samsung is indeed the clear winner in the smartphone wars capturing a 33 percent share of the market this year compared to Apple’s 21 percent. Projections are that Samsung could sell as many as 290 million units this year because it’s captured more volume than Apple with a projected 180 million units sold projection.
This is why Mawston believes that an iPhone Mini is on the horizon, as the pre-paid and under $250 price -point markets are consumers that may yet be hungry for a bite of Apple Inc. (NASDAQ:AAPL) at the right price. Mawston doesn’t believe this change could happen before 2014 because release would cut far too much into iPhone 5 and 5s profits, but Peter Misek of Jefferies believes a similarly priced product could launch as early as this summer.
As for latest rumors about Apple TV, it appears that Intel is actively trying to beat Cuppertino to the punch. It may be that Intel’s plan to release a set top box before Apple may be out of the same desperation made by other companies to release smart televisions—LG has already announced two Smart TVs at CES and Samsung is making a big push of its own.
I’d wager that hasty attempts to get a product into the hands of consumers hungry for revolutionized television will not really cure the hunger for an expertly designed interface and large library a-la-carte content that consumers are really demanding and are already getting through torrents and services like iTunes, Netflix and Hulu Plus. Only time will tell if cable companies will play along.
What are your thoughts on the future of Apple Inc. (NASDAQ:AAPL) and on Smart TV? Weigh in below! I’d love to hear your thoughts.
Disclosures: None
