Just ahead of the release of iPhone 6 from Apple Inc (NASDAQ:AAPL) on September 9, Apple lost 4.2% of its share value retrieving back to $98.94 per share. The security attack on Apple’s iCloud service and new partnership between Samsung Electronics Co Ltd (KRX:005930) and Facebook Inc (NASDAQ:FB) are considered to the primary reasons behind this fall. Apple lost $26.1 billion of investor’s money on Wednesday.
Apple Inc. (NASDAQ:AAPL)’s iCloud service was cited as the source after a hacking group posted nude photos of celebrities all over the internet last week. Apple offers ‘Find My iPhone’ app to help users synchronize all of their Apple devices with a single account including iPad, iPhone, and Mac.
Apple Inc. (NASDAQ:AAPL) has investigated the matter for over 40 hours and released a statement that none of its services were compromised during this attack. The company even said that the hacks were designed to target particular celebrity accounts with multiple combinations of username and passwords. Apple’s systems might not have been compromised but it certainly questioned their ability to keep sensitive information.
In addition to it, the partnership between Samsung Electronics Co Ltd (KRX:005930) and Facebook Inc (NASDAQ:FB) was another major reason for the decline in Apple’s share prices. Samsung is all set to work on virtual reality projects and it would prepare a device (Samsung Gear) that could create a virtual 3D screen with a single touch. Experts are considering it a breakthrough for the gaming segment where users would be able to transform their Smartphone into a virtual-reality “brain.”
According to experts, Samsung Electronics Co Ltd (KRX:005930) might not be able to frighten Apple Inc. (NASDAQ:AAPL) with its Galaxy Note 4 and Galaxy Note Edge devices but this partnership could certainly cause troubles in future.
This article has been written by Prakash Pandey.