Apple stock takes a 10 billion dollar hit!

[Marky]

Hey all,

The apple stock has recently taken a massive hit with the announcement of the new iPods and the recent iPhone price cut.

While it may have been a great day for Apple consumers, the stock holders did not agree. After the announcement of 7 new iPod variations and a $200 price drop for the 8gb iPhone, Apple’s stock took a fall that ended -7.60 at the end of the day yesterday.

Today prices have risen slightly, but the stock is still looking at $10 Billion Dollar devaluation in the last 24 hours.

The reason? Well, it’s speculation, but from those that I’ve asked that know more about this than i do, the reason for the drop is the $200 price cut on the iPhone. Fear of customer backlash (which is happening in droves) and the fact that Apple just significantly reduced their per unit profit on each iPhone sold from here on out.

Source Digg

Thoughts?

Marky

 

[Christo]

Well I did recommend shorting apple stocks following that announcement didnt I

I can see why they have dropped. The ipod touch wasnt as expected - all it is, is an iphone iteration - no innovation/nothing new there. The ipod 'classic' simply hasnt changed since 2005, its form factor may have slightly changed and thats pretty much it. The ipod nano range - not sure how this new size will sell, I think not as well as the old form factor. - All of that will contribute to 'less good' sales. If you combine that with the sales of the iphone in July didnt even match iphone sales from the first 2 days of its launch - ipod classic sales also are stagnant, ie pretty much the same as last year and the fact that business confidence isnt the highest at the moment, you will find you answer!

Apple need to release a new 'killer' ipod - ie ipod touch with 80gb - that would be massive massive hit - whether or not a hard drive combined with touchscreen is possible (battery life issues) is another matter. Also if they announced a 3g iphone with say 16gb, being relased in Europe at say appleworld (25th Sept) I am sure the stock will rise. Their current new range/announcement was simply dissapointing.

 

[Rossmac]

Short those stocks! Or ride out the storm, which would be my plan of attack!

 

[Psypher5]

Wait till they start selling the new stuff.

Everyone will be in the money and laughing.