Apple’s shares have fallen over 30% since its peak in 2012 and sales continue on a downward trend while the company continues to focus on leading competition in courtrooms.
In April of this year Apple made a promise to investors that the company would return $100bn to shareholders by the end of 2015 with business tactics such as raising dividends and buying back shares. But this previous year to dates progress prompted billionaire investor Carl Icahn to have a pep talk with the company.
The company’s shares reached a peak record of $702 in September of last year but since 2012 have declined over 30%. Mr. Icahn is currently one of the biggest shareholders with stock worth well over $1bn and told reporters he has built up a large stake in Apple. Icahn recently paid a visit to Apple’s chief executive Tim Cook for a nice conversation regarding the serious undervalue of Apple stock.
The announcement to boost market shares has already prompted a slight increase, closing at 4.75% or $489.57 a share. But the billionaire says he will be visiting Cook again very soon to discuss new progress in those plans. As Apple begins progressing towards a $150bn buyback, at least Icahn is confident that stock could once again reach the $700 mark and prove to take the company to new financial heights.
Meanwhile the company’s focus continues to be on leading competition Samsung as Apple pushed to have the 2011 decision finding Samsung guilty of patent infringement upheld by the US ITC. The US ITC has issued all Samsung phones in violation of the patent be removed and banned from the United States. The patents include such items as touch screen technology and an audio jack, and effects phones, tablets and media player devices.
The prompt for the push in US ITC comes after 2013 polls mid-year have begun to show Samsung climbing above Apple in overall customer satisfaction and sales. A side by side comparison of the two phone giants shows the underlying reasons for the consumer shift to Samsung products:
* The lowest purchase price of an Apple touch screen phone will run consumers over $400
* While a Samsung touch screen phone with Android technology can be found as low as $100 on the market without time-consuming mail-in rebates or signing a contract
* Metro PCS which offers low priced unlimited monthly phone plans does not carry even a single Apple phone for use with their plans which are increasing popular among many consumers. Those uninterested in tying themselves into a yearly contract and others with bad credit avoiding up to $1000 in security deposit fees from other name brand service provides choose Samsung or another alternative
* After numerous problems reported with the iPhone 5 resulting in many repeated returns from customers, and the delay on new iPhone products due to similar problems have left a bad taste in consumer’s mouths for Apple products
The future can potentially look bright with such shareholders as Icahn stepping forward as motivation for the Apple Company and the potential of the $150bn buyback promised to investors. In the meantime, it is hopeful the company will continue focus on further developing technology that will be more hassle free and purchased at reasonable prices for consumers while welcoming a little healthy competition.
President Obama is current reviewing the US ITC decision before allowing the competition to be stripped from stores in the US market.
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