Rumor Apple Inc. Decides to Enter the Automobile Industry

The technology giant is not going to leave any technology behind; it wants to have it all and give it all to its customers.

In November 2015, news emerged that the technology giant leased a 96,000 square foot property in Sunnyale, California as per the information this piece of land was previously owned by PepsiCo as a bottling plant. The tech giant at this point has said absolutely nothing regarding this land and what it plans to do with it. However, rumors of Apple Inc. working on an electric car have gain momentum in the last six months. If that rumor is true then this land is likely to be used as an Electric Vehicle (EV) Production Plant.

The technology company has always been a master at keeping secrets; as per the news the giant was working in the area and conducting its automobile research which made many believe that this is what the piece of land signified. It’s evident that Apple wants to ramp up its automobile research sector and hence it has leased this property. The Sunnyale property was leased by the company yesterday and along with that it had initially rented a 140,000 square foot building along with an 80,257 square foot property very close to the Sunnyale land.

Apple Inc. has given a codename to this project “Project Titan”. As cheesy as it might sound, many believe that the iPhone maker might be working on developing an Electric Vehicle (EV). It has been quite discrete about it but all the recent leasing, renting, hiring of experts from the automobile industry, points in that very direction which states that the company might just be working on development such an automobile and is likely to achieve another milestone.

When the CEO of Apple, Tim Cook was questioned regarding this at the annual general meeting that was recently held, he simply stated that this is going to Christmas Eve for a while for everyone as children would never know what would be waiting for them downstairs but they would be excited for it. That was a quite vague answer by the CEO but nonetheless simply made shareholders and customers much more excited.

Furthermore, the CEO of Tesla Motors has stated that its sort of a ‘open-secret’ by the technology giant in the industry. As per a report by The Wall Street Journal, the iPhone maker has had automobile ambitions and added that the technology corporation is hope to start shipping its ‘secret product’ by 2019 and plans to increase its workforce by as many as 1,800 employees.

Even though the rumors have become quite clear, Tim still wants to keep this a secret which has practically become an open-secret now. He stated that at apple, they aim at working with innovative technology and they are always thinking about making great products that their customers would love.

Apple, Inc. Enters 'Bear Territory' - Loses $160 billion

The tech giant loses $160 billion and has now officially entered the Bear territory.

The Silicon Valley Giant, Apple Inc. lost more than $160 billion since July, 2015 due to the weakening demand for smartphones. The latest drop that the tech giant witnessed was of 2.7% on Friday and was being traded at a share price of $106.03 which, according to USA Today, indicates that the stock of the tech corporation is entering the bear territory.

On Friday, the corporation approximately lost $160 billion which indicated a drop of 21% from its all-time recent high of $134.54. The amount that the tech corporation lost is more than the market value of over 477 companies listed on the S&P 500. Furthermore, USA Today stated that the market value that the multinational technology corporation lost is equivalent to the total market value of companies such as Nike, Inc. PepsiCo and IBM.

Apple stock is widely popular amongst individual investors. Being the most important stock in terms of market value, it is a huge deal that the company has lost so much. Despite of the fact that it has lost billions, it is still considered worth more than many other United States companies. The sole reason for this decline resides in the fact that the demand for smartphones has declined drastically in the last few months. Analysts at this point are sure that the demand is expect decline furthermore in the fourth as well as the first quarter of the following fiscal year.

Even though the tech corporation works on many other gadgets, the most revenue and profit that the company earns came from its smartphone division. According to S&P Capital IQ, many analysts are not estimating the adjusted earnings of the company to come down to $3.24 per share in the 4^th quarter. They have also cut price targets and earnings estimates and the profit has also been cut by 2.4% in comparison to a month earlier.

63% of the corporation’s revenue was generated from the iPhones in the previous quarter which indicated an increase of 7% from its earnings a year ago. According to Katy Hudson, an analyst at Morgan Stanley, the iPhone sales are likely to fall by 6% this year, making the sales of the smartphone go down to 218 million devices from initial sales of 231 million in the current year.

It’s evident that the tech giant is running out of ways to increase the sales of its new iPhone. The corporation has already tried to do so by releasing phones with even bigger screens, better leasing programs and also signing a deal with China’s largest carrier – just so it could attract more customers towards iPhones every year.