Apple (AAPL, Financial) was one of the top losers on Sept. 25, when the stock price dropped 2.38% to $98.64 from the day before, amid reports that the new iPhone 6 and 6 Plus could be relatively easy to bend or misshape.
About two days ago, a small number of owners reported that if left in the back pocket and sat on, the iPhones could bend. Lewis Hilsenteger, creator of a YouTube product review series called Unbox Therapy, posted a video of himself bending the iPhone with his hands, and demonstrated a weakness near the buttons. While the force Hilsentenger used to bend the phone was extreme, it circulated widely on social media and may have been enough to spook some investors.
Apple has yet to release a statement in response to these claims. However, the company has dealt with fluctuating stock prices after major releases in the past. After the announcement of the iPhone 5S and 5C in September 2013, Apple’s trading volume increased by about 17%, but prices ranged from $64-67, until hitting $70.09 three days after the release date when Apple announced it had sold a record-breaking nine million new iPhones. Since the iPhone 6 and 6 Plus have since broken the record by selling 10 million units, it remains to be seen whether the bending reports will continue to impact Apple’s stock.
Despite Apple’s large size, the company continues to post encouraging growth rates, with 11.4% revenue growth over the past year. Apple’s gross margin decreased about 14% in September 2013 year over year. But at 37.62%, the margin is still a favorable sign, and higher than the industry median of 23.09%.
Similarly, Apple’s operating margin declined in September 2013 compared to the year before, but is still expanding over the long term.
The company also issued bonds in 2013 for the first time since 1996 and raised about $17 billion. The move was intended to finance a $100 billion capital reward for shareholders. This is an important factor in Apple’s steadily increasing cash and cash equivalents.
Apple’s P/S ratio was 3.21 in the quarter ending in June.
