The Apple has fallen far from the tree, as Apple has lost over $50 billion in market cap today after reporting its first quarter earnings.
The share price fell over 12 percent on Thursday, as iPhone sales failed to meet expectations, despite selling a whopping 47.8 million units.
From this time last year, Apple saw a 21.2 percent drop in Mac sales, as the iPad has cannibalized the computer product line.
In addition, some claim that the iPad Mini is affecting the original iPad’s sales.
Apple sold 22.9 million iPads up from 15.4 million the same quarter last year, and the company has had trouble meeting demand for the iPad Mini due to production constraints.
Apple CEO Tim Cook tried to spin the news as well as he could.
“I see cannibalization as a huge opportunity for us,” said Mr Cook.
“On the iPad we have the mother of all opportunities here — the Windows market is much, much larger than the Mac market.”
He also believes that buying iPads can lead to buying computers.
“When someone buys their first Apple product,” he said, “they end up buying another one.”
Apple reached an all-time high of $705 per share in 2012, but has since slumped all the way down to closing at $450 today.
James Gilbert | Elite.