Apple’s brand new Iphone 6 and IOS 8, introduced to the public last month, was not a great deal for its stock price growth.
A company’s stock price usually increases when they introduce a new product because of the potential that investors see from it. However, on September 25th, Apple experienced 2% fall in its share price due to two different reasons—numerous problems caused from new IOS 8 update, and a video that criticized the structure of easily-bended Iphone 6. Many people, also other companies, made caustic jokes about the product through social network services, referring it to the name “bendgate.”
One of the reasons behind this failure is related to value proposition. Customers these days tend to purchase phones with wider screen, but lighter in weight. Apple, therefore, used aluminum as the main component of the phone, which seemed successful in reducing its thickness and weight. Fulfilling customer’s need was a “gain creator,” except that it was overly excessive, and the gain changed into pain.
Apple is the largest company in entire world, and their shares would eventually go up. However, in order to maintain the position as a leader of technological device market, they must stop risking the consequence from their excessive value propositioning.
Reference:
http://www.thestreet.com/story/12892278/1/why-apple-aapl-stock-is-down-today.html
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Bendgate: Apple iPhone 6 bending in pockets news leads to endless internet mocking