Apple is temporarily knocked from the top spot with innovative products coming in 2013
Apple and Exxon Mobil had been hovering at top spot in 2011. Apple's market cap hovered around $337 billion. Following a string of outperforming quarters, Apple watched its share price grow to over $705, with its market cap rising.
In August 2012, Apple hit the top spot as the most valuable company (market cap of $622 billion).
Over the last six months, Apple's shares are down $136.24, or 23.7 percent. Since the beginning of 2013, Apple's stock slid downward by $17.56.
Apple's shares are declining inversely to its corporate performance. Welcome to the stock market.
If you look at earnings, Apple generated $54.5 billion in revenue during the 13-week fiscal period ended December 29 2102. Ironically this is its highest quarter of revenue ever.
The company posted a profit of $13.1 billion on a record 47.8 million iPhones and 22.9 million iPads sold.
Wall street, as always has become greedy with respect to Apple. Apple's Mac sales slipped during the period, and consensus on Wall Street had expected a stronger profit. In 20122 Apple generated the same $13.1 billion profit on $46.3 billion in revenue.
The most important reason for the selling of Apple stocks is Apple's competitive struggles.
iPhone and iPad continues to lose ground to Android. Samsung, Apple's biggest competitor now ships more smartphones than Apple.
Apple has a year ahead with new product announcements and no doubt they will be innovating. Analysts have set Apple's 12-month target share price at $647.18 (53 analysts). If Apple meets these target it would regain the top spot pushing Exxon to the runner-up.
2013 Predicted Apple Product Launches
- Major updates to all of Apple's lines - and a new TV
- iPad Mini is set to get a retina display
- A major overhaul of Apple's iOS software is expected
- In 2014 Apple searches for the 'next iPad'
Apple will launch five new products in the next 12 months, including its highly anticipated TV set.
Analysts Gene Munster and Douglas Clinton of Piper Jaffray say the firm will launch many new products.
The analysts say the new gadgets could be just the beginning of a major change in Apple's products in 2014.
In early 2013 Apple will be unveiling of an Apple-branded radio product – perhaps called iRadio – which will deliver podcasts and music content through iTunes.
This will be followed by a new version of the iPad mini with a higher resolution Retina display.
A new version of Apple's iPhone and iPad operating system, expected to be called iOS 7, is also planned for release in June 2013 at the firm's annual Worldwide Developers Conference (WWDC) in San Francisco.
Analysts believe the conference could also have a another surprise - a new iPhone.
The iPhone 5S, a much rumoured incremental update to the current iPhone iteration, is also to be announced at WWDC, according to Munster and Clinton.
Recents reports claim the new handset and software are already being tested by Apple.
November 2013 is set to see the biggest new product launch for Apple, and it is believed to be a line of HDTV.
Many in the industry are waiting for Apple to show its hand after the dozens of rumours that the Steve Jobs led project would produce a range of big screen TVs with a revolutionary interface. Apple already make the Apple TV.
The rumours are that Apple will launch 32-inch and 37-inch televisions in 2013 and even 50 and 55-inch models in 2014.