For Apple Inc. (NASDAQ:AAPL), it was the biggest loss
in four years.
The Cupertino company's shares slid more than 6
percent on Wednesday as intensifying competition from other mobile companies
raised concerns about it being able to maintain its market share.
Research firm International Data Corp also threw a
scare into investors on Wednesday when it came out with a report which said
that Apple would end the year 2012 with a loss in market share of its tablet
devices at the expense of Google's mobile handsets.
According to IDC Apple's worldwide tablet market share
will slip to 53.8 percent in 2012 from 56.3 percent in 2011, while Android
products would increase their share to 42.7 percent from 39.8 percent.
The immediate fear stems from Nokia's Lumia 920 which
has been recently launched in China in a tie-up with China Mobile, which is the
country's largest network carrier. Apple has tied up with China Telecom and
China Unicom but not with China Mobile.
There was another trigger in the sell-off in the stock
as unconfirmed rumours spread that a major stock-clearing house was raising
margin requirements on Apple stock trades.
The stock was one of the day's biggest percentage
losers on the S&P 500, shedding $35 billion of market value as more than 37
million shares changed hands -- blowing past the company's average daily volume
over 50 days of 21 million, Reuters reported on Thursday.
Apple's shares have been on a secular downtrend since
September when its iPhone 5 was launched, but subsequent events and its own
pessimistic forecasts of the sales of its iPads have dented sentiments.
The shares are still up a third this year but are down
nearly 24 percent from its record high of $705.07, hit on Sept. 21. The stock
slid more than 6.4 percent on Wednesday to close at $538.7923.
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