Apple under pressure after share price plunge
Apple is facing dual pressure: to maintain sales and earnings growth and to come up with a new product category.
Though earnings continue to grow, sales are under pressure because of the lackluster performance of the iPhone 5c.
This is the product category which Apple invented under pressure from its investors and tech pundits, and the company is now feeling the pinch as sales of the upmarket 5s continue to outpace the cheaper model.
The second trigger, which caused Apple shares to free fall earlier today, is the pressure to invent a new product category. So far, Apple has resisted the temptation of releasing a half-cooked product.
The clamor around iwatch is disappearing and there is uncertainty around what the new category will be.
Once operating in Apple's shadow, Google has had a fantastic run with its acquisitions in past eighteen months and investors may be wondering why Apple missed opportunities such as Nest.
