Apple loses core status as world's largest company
Analysts claim the tech business has lost its 'mojo' as share price drops amid fears over iPhone sales
APPLE'S status as the world's largest company has crumbled after the technology giant's share price slumped to an 18-month low. One analyst says the business has lost its "mojo".
The 5.5 per cent dip came after Apple supplier Cirrus Logic reported a decline in sales. Cirrus, which makes sound components for the iPhone and iPad, is thought to generate 90 per cent of its revenue from Apple – prompting fears the figures could indicate a corresponding decline in Apple's sales, The Times reports. Analyst Vernon Essi, of US broker Needham & Co, said the technology company had lost its "mobility mojo".
Apple has suffered a bruising few months, with its share price dropping by 40 per cent since its peak in September 2012, when the iPhone 5 was released. The company closed at $403 per share yesterday, meaning Exxon Mobil is now the world's biggest business, with the oil company valued at $384bn to Apple's $378.2bn.
Many on Wall Street are concerned by rumours that Apple will not release a new iPhone to compete against Samsung's much-hyped Galaxy S4 until September 2013. The S4, which will be released next week, is widely tipped to expand Samsung's market share and has been dubbed the 'iPhone killer'. Michael Yoshikami, of Destination Wealth Management, told the Evening Standard: "This is a tough environment. Apple is in transition between products."
Apple is due to release its latest quarterly results next Tuesday, with Wall Street analysts predicting the software giant will report its first year-on-year decline for almost a decade.