Apple shares are down over 25 percent since hitting a peak of around $705 following the iPhone 5 launch in late September, based on panic that demand for the latest iPhone is not as high as expected. And because of Apple Maps. And the subsequent corporate shakeup.
Apple’s stock could rebound in the near future, however, as KGI Securities analyst Ming-Chi Kuo claims that the Cupertino-based corporation likely crushed analyst expectations by selling 52 million plus iPhone 5 units during the holiday season, a 41% year-over-year increase.
The problem with Apple is that analysts set unrealistic expectations that the world’s most valuable company can’t possibly meet. Apple routinely sells millions upon millions of iPhones, iPads, iPods and Macs each quarter, which for some reason fails to impress Wall Street.
But if this analyst is correct, Apple could blow past analyst expectations after missing the mark for three consecutive quarters. Hopefully, in the future, analysts will set expectations that are more within reach for Apple, instead of setting the bar at a near impossible level.