Apple share price drops on concerns

Apple share price drops on concerns

Apple Computers might be doing fairly well with their iPod range of digital music players. However, they are not really managing to impress the stock market. The growing concern over their recently announced migration to the Intel platform has resulted in a massive drop in their share price in the stock exchange.

The NASDAQ suffered as the company continued to slide down. The Apple stock fell 6.3 per cent to $US67.30 on the NASDAQ and has been trading at a premium to competitors. Investors are somewhat concerned over their ability to continue to outperform the market expectations when it comes to selling iPods and their capability to keep the interest alive in the Intel powered Macintosh computers.

Jim Awad, chairman of Awad Asset Management spoke about the market’s concerns related to Apple Computers: “There are questions as to whether the growth rate is sustainable.” The interesting part is that the price of the company’s stock at the current moment is about 32 times estimated 2006 earnings which is somewhat unjustified considering the competition Apple faces in the market.