Business

Apple exec shakedown pushes stock to lowest point since July

Apple’s management shakeup is having some nasty effects on the company’s stock value.

On Monday, Apple announced that iOS head Scott Forstall and retail chief John Browett were leaving the company. A sign of instability, executive departures are rarely a good thing for companies, especially ones as rocksteady and stable as Apple.

As a result of the news, Apple’s shares fell this morning by 2.5 percent to $588, the stock’s lowest point since late July. This is the first time investors have had a chance to react to the announcements, which surfaced as Hurricane Sandy prepared to ravage the East Coast.

The stock slide follows a similar one that greeted Apple’s announcement of the iPad mini earlier this month. While the device was one of many new products from Apple that day, investors were largely unimpressed with what Apple had to say. And the company’s stock value reflected that.

Elsewhere, Apple is facing an increasingly tough tablet market as competitors like Google and Amazon step up the game and newcomer Microsoft threatens to snatch away Apple’s largely uncontested share of the tablet pie.

These factors together are also contributing to Apple’s decline, which, while minor, shows the company has weaknesses in its armor.


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