Explaining Southern California's economy

FAQ: Why is Apple's stock sliding? And how low can it go?

A view of the main entrance to Apple Inc.

AFP/AFP/Getty Images

A view of the main entrance to Apple Inc. in Cupertino, California. The company's stock has been crushed over the past few months. How low can it go?

Last year, Apple's share price rose above $700. Some analysts started getting all crazy with their predictions for where it might go. Could Apple hit $1000 and become the world's first $1 trillion company?

For a while these calls didn't look so crazy. As a company, Apple was a beast. It could do no wrong. The declines were inevitable, but temporary. The stock would always recover and resume its inexorable match to quadruple digits.

Apple dipped below the psychologically important $500 per share barrier this week (it's since recovered a bit as investors waiting for it to dip below the psychologically important $500 per share barrier piled in). There are some serious and well-respected investors who are bearish on this stock. Jeff Gundlach, of L.A.'s DoubleLine Capital, is one of them. He's set a target price for Apple of $425.

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PHOTOS: Top 10 California business and economics stories of 2012

Apple Introduces iPhone 5

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Apple introduces the iPhone 5 in San Francisco. It was the first time that the technology juggernaut, the most valuable California company by far, introduced a new device since Steve Jobs' death. Will it be enough to make Apple the world's first $1 trillion company in 2013?

Rupert Murdoch

Justin Sullivan/Getty Images

The Tribune Co., owner of the Los Angeles Times along with dozens of other media properties, finally exited bankruptcy on New Year's Eve. Now the real fun can begin in the City of Angels: Who will buy the hometown paper? Could it be...Rupert Murdoch?

elon musk

Photo Credit: SpaceX

SpaceX CEO and Chief Designer Elon Musk watches Dragon's progress inside of SpaceX Mission Control in Hawthorne in May. The former PayPal founder whose other company in electric carmaker Tesla Motors put California's space business back on the map — and ushered in a new era of private voyages to the stars. But will he really be able to retire on Mars?

George Lucas Poses With A Group Of "Star Wars" Inspired Disney Characters At Disney's Hollywood Studios

Handout/Getty Images

Disney CEO Bob Iger completes a trip of high-profile acquisitions, beginning with Pixar, then moving on to Marvel, culminating with a purchase of Lucasfilm from George Lucas. "Star Wars" now belongs to the Mighty Mouse — and Episode 7 is on the way! But will Disney be able to inject new life into one of pop cultures iconic entertainment franchises?

Reed Saxon

California was crushed by the housing downturn. But fours years after the bottom fell out, the state's real estate market at last began to show signs of life, as the foreclosure crisis fades and a price bubble even began to form in Southern California. Will the market return to normal in 2013?

FORTUNE Most Powerful Women Dinner New York City

Jemal Countess/Getty Images for Time Inc.

Former Google superstar Marissa Mayer took the helm at troubled Yahoo, after a ugly battle between the board of directors and activist shareholder Dan Loeb. Mayer began to make immediate management changes, brought back free food, became one of the most powerful female CEOs on the U.S. — and had a baby! Can she live up to the hype in 2013?

CinemaCon 2011 - Day 2

Ethan Miller/Getty Images

The battle for the future of online content heated up. In early 2012, Silicon Valley and Hollywood dueled in Washington, D.C., over anti-piracy legislation. Hollywood had the lobbying power, embodied by former senator Chris Dodd and the MPAA. But Silicon Valley won a critical skirmish in the eleventh hour by blacking out Wikipedia for a day. Will the combatants be able to strike a truce in 2013?

Job Seekers  Meet With Recruiters At Job Fair

Justin Sullivan/Getty Images

At the tail end of 2013, California's unemployment rate dropped into single digits for the first time since 2009. And compared with the rest of the U.S., the state spent 2012 adding jobs at a brisk clip. But will the recovery be able to sustain its momentum in 2013?

 bankrupt pensions

Steven Cuevas / KPCC

San Bernardino fell off its own fiscal cliff in 2012 — and fell fast, declaring bankruptcy quicker than anyone expected. The broke Inland Empire city joined Stockton and Mammoth Lakes in a minor bankruptcy boom in California and set the stage for the municipal bond market's worst nightmare: a long-anticipated wave of defaults in the Golden State. Could that scary event come to pass in 2013?

A sign announcing Facebook IPO is flashe

EMMANUEL DUNAND/AFP/Getty Images

It was supposed to be the initial public offering of the century, enriching Facebook employees and investors and reviving a moribund IPO market for high-tech startups. But Facebook flopped in first-day trading and kept on falling in subsequent days. Facebook's lead banker, Morgan Stanley, was blamed for botching the offering. Facebook CEO Mark Zuckerberg went on the defensive. And by year end, Facebook still hadn't recovered it $100 billion valuation. But it topped 1 billion active users before the ball dropped in Times Square to ring on 2013. Will 2013 be the year it bounces back?


This is one in a series of year-end stories that look back at the most memorable pieces KPCC reporters worked on in 2012 and look ahead at a key issue that will be the focus of coverage in the coming year.

How much happened in the Golden State in 2012 when it comes to business? Lots. Lots and lots. The DeBord Report covered most of it. 

The slide show above serves up the business year in pictures for the state with the largest economy and two of America's most storied industries: Hollywood and high-tech.

And if you want to review the business year in links to the original posts...well, I've got that covered, too.

10. Apple introduces the iPhone 5 and the iPad Mini — the first all-new gadgets rolled out by Cupertino since the death of Steve Jobs

9. The long, long, LONG Tribune Co. bankruptcy comes to and end. So who will buy the Los Angeles Times?

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3 reasons the Apple iPad Mini won't fail

Apple Introduces Latest iPad

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SAN JOSE, CA - OCTOBER 23: Apple Senior Vice President Phil Schiller announces the new iPad Mini. It's smaller and lighter and $329 for a 16GB WiFi-only version. And it arrives just in time for the holidays!

Apple is currently rolling out some new products in San Francisco. So far, we've seen a new MacBook Pro and a thinner and sexier iteration of the iMac, which is just another word for "planned obsolescence" in Apple-land. 

But the main event is yet to come: A smaller iPad, about 8 inches in size, called "iPad Mini."

Unlike the iPhone 5, which prior to launch I argued was doomed — DOOMED! — the iPad Mini/Air/Junior/Deuce/Whatever could succeed wildly. Here's why...

Apple owns the tablet market, so it's no big deal to steal share from itself. Apple has sold 100 million iPads in the two years since its introduction. As I and others have pointed out, there is no tablet market. There's an iPad market. However, since the arrival of the Kindle Fire and now the Microsoft Surface, there is some pressure on Cupertino. iPad Mini naysayers argue that a smaller, cheaper tablet will cannibalize the Big Boy. Probably true. But the thing is, Apple can afford to cannibalize the iPad, with a base iPad Mini that's $329 in the 16 GB WiFi-only version. And if it steals some lower-end market share from Amazon ... well, there's nothing wrong with that.

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UPDATE: Apple announces new iPad mini

Apple Introduces Latest iPad

Kevork Djansezian/Getty Images

Apple Senior Vice President of Worldwide product marketing Phil Schiller announces the new iPad mini during a special event at the historic California Theater Tuesday morning. The iPad mini is Apple's smaller version of the popular iPad tablet.

UPDATE: $329, for the 16GB WiFi-only version. Shipping early November. Pre-orders October 26. And it will have cellular capability.

UPDATE: It's the iPad mini. Apple has spoken. It's going to be 7.9 inches (the ipad Maxi is 9.7 inches — neat, huh?). Apple has also rolled out a new MacBook Pro, a new Mac mini, something about textbooks that seemed to greatly excite CEO Tim Cook, and a new iMac.

PREVIOUSLY: Apple is live-streaming today's much-anticipated but not exactly all that secretive reveal of the iPad mini. BUT the company is only livestreaming it through Apple's Safari browser! So switch now, Chrome and Firefox people! I'm not even sure what you Opera and Rockmelt folks are supposed to do. Explorer? Yeah...

If there is a big surprise in store, it could be that the iPad mini won't be called the iPad mini, but rather something like the "iPad Air," to ally it with the MacBook of the same name.

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