Apple Loses $170 billion in 3 months

For a company that was billed to hit a trillion dollar market cap in the near future, Apple’s recent stock market performance has been somewhat shocking. From the September 19, $661-billion peak, Apple’s market cap has fallen by nearly $170 billion to $492 billion. The stock has fallen from $702.1 to $518.8. ET looks at what’s happening to the company that used to be run by Steve Jobs

Apple Shares are Falling Because...

Higher Capital Gains Tax: A higher US capital gains tax will take effect in 2013. Apple’s shareholders have made some of the sharpest capital gains in recent times. Therefore, they will be taxed the most in the US. So, stock holders are selling to avoid tax payout

Stiffer Competition: Rivals are making phones as smart as the iPhone but at far lower prices

Pressure on Margins: As a result, Apple is changing tack and planning cheaper products. This will reduce its hitherto fabulous margins

Nothing New: New launches are upgrades. The next big thing, Apple TV, appears to have been postponed

Supply Side: Apple’s Asian suppliers of components have been reporting order cuts, raising questions about iPhone 5’s market strength, says Citibank, which is the fourth bank to cut Apple’s

The Jobs Factor: Would all this have happened had Steve Jobs been there, that’s what many investors are asking