DEBATE: As shares continue to tumble, could this be the beginning of the end for Apple?

As shares continue to tumble, could this be the beginning of the end for Apple?

Fiona Cincotta, senior market analyst at City Index, says YES.

The easy money momentum trade on Apple looks to be well and truly over. As Apple heads into bear market territory and innovations are lacking, the future is looking less rosy for the former darling of Wall Street.

The writing was on the wall when Apple took the decision to no longer disclose separate quarterly sales figures for iPhone, iPad and Mac products. That move raised suspicions with investors, which have been confirmed on reports of reduced iPhone production orders.

The transparency of Apple has changed, and that is being priced in. Sales of Apple’s flagship product, the iPhone, have been underwhelming, and with production orders cut by around a third, future figures can only ever be lacklustre at best.

But it’s not all about the sales. There is this growing feeling that Apple is no longer the innovator that it once was. The brand is living off its former glories, and this is just not enough to keep driving sales and the share price higher.

Tash Willcocks, director of Masters Europe at international business school Hyper Island, says NO.

It’s fair to say that 2018 has been the year of the “techlash”.

Tarnished by data breaches, harassment lawsuits, and that iconic image of Mark Zuckerberg in front of Congress, the big tech companies are no longer the revered deliverers of freedom they once were. Consumers have grown wary as controversies continue to make the news, and this (in part) explains Apple’s share price drop.

To consider this the end would be a little rash, however. Apple is a company built on versatility. People wrote it off in the 1980s, when IBM personal computers dominated the market; people looked weirdly at the iPod on its release; and Apple survived Steve Jobs’ departure in 1985… and his return.

This is a team of professional future-proofers. Focusing heavily on corporate culture, Apple makes sure to evolve and adapt to the demands of the time. This share price drop is clearly concerning, but for some of the world’s best problem-solvers, it’s just another interesting intellectual challenge.