This holiday season is shaping up to be a record-breaking period for Apple as shoppers snap up iPhones and iPads.
Despite this, the world's most valuable company is losing its lustre with investors.
Apple began selling the iPhone 5 on September 21, the same day the company's stock hit an all-time peak of US$705.07 per share.
Since then, the shares have plunged nearly 25 per cent, trimming the company's market value by more than US$150 billion (Dh550.84bn). On Friday, the stock fell almost 3 per cent and closed at $533.25.
Smartphones and tablets "are starting to become more like commodities", said the BGC Financial analyst Colin Gillis. "And how much upside is left if you are stuck in a commodities business? The question is: What is going to get Apple going again?"
The iPad mini is undoubtedly diverting some sales from full-sized iPads, which sell at prices ranging from $399 to $829. That is one of the reasons Mr Gillis expects the iPad's average selling price to fall by about $50 in the current quarter, which ends this month. That would be a 9 per cent decline from the iPad's average price of $535 during the July to the end of September period.
Disagreements over Apple's decline are contributing to unusual volatility in the stock. On Wednesday, Apple's stock fell 6.4 per cent, the biggest one-day drop in more than four years. Just two and half weeks ago, the stock surged 7.2 per cent for its biggest one-day gain in three years.
There's no consensus regarding the cause but one thing is clear: there have been more investors eager to sell Apple's stock than buy it in recent months, despite all the evidence indicating Apple's products have never been more popular.
Even if it's no longer the market leader, the iPhone remains hotter than ever. Based on figures released by the wireless carrier AT&T last week, the Jefferies analyst Peter Misek predicted Apple would sell 53 million iPhones this quarter, primarily the newest model. That would be a more than 40 per cent increase from Apple's previous one-quarter record of 37 million iPhones set in the period covering last year's holiday shopping season.
But some investors are starting to wonder if Apple can conjure up another revolutionary product to catapult the company on another multi-year stretch of breakneck sales growth.
Most analysts believe Apple's next breakthrough will be a television that shares the same operating system as the iPhone and iPad. An Apple TV would give the company a prized perch on the biggest screen in most households and open up an array of new business opportunities.
"When I go into my living room and turn on the TV, I feel like I have gone backwards in time by 20 to 30 years," the chief executive Tim Cook said. "It's an area of intense interest. I can't say more than that."
Mr Gillis, though, points out savvy investors probably would not be selling their Apple shares if they truly believed the stock was destined to soar higher and make them even richer a year from now.
"Sometimes, stocks just take a breather," he said.
"And when you get to be as big as Apple, any shift in sentiment can have a material impact on the share price."
* AP
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
FIXTURES (all times UAE)
Sunday
Brescia v Lazio (3.30pm)
SPAL v Verona (6pm)
Genoa v Sassuolo (9pm)
AS Roma v Torino (11.45pm)
Monday
Bologna v Fiorentina (3.30pm)
AC Milan v Sampdoria (6pm)
Juventus v Cagliari (6pm)
Atalanta v Parma (6pm)
Lecce v Udinese (9pm)
Napoli v Inter Milan (11.45pm)
FINAL RESULT
Sharjah Wanderers 20 Dubai Tigers 25 (After extra-time)
Wanderers
Tries: Gormley, Penalty
cons: Flaherty
Pens: Flaherty 2
Tigers
Tries: O’Donnell, Gibbons, Kelly
Cons: Caldwell 2
Pens: Caldwell, Cross
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
