Sometimes the stock market amazes me. He we are, just a few days removed from Apple announcing a $199 iPhone – a move that could see them being THE dominant cell phone maker in the industry in less than a year, and the stock keeps dropping because the change in agreement with At&t is going to end up potentially costing Apple .03 cents a share in revenue this year.
If I was able, I would buy as much Apple stock as I could during this down turn (not that I’m suggesting you should – because I’m not giving you investment advice…seriously), because I personally don’t see how this move on Apple’s part could be anything but a good move.
Sure, they might lose .03 cents a share in revenue this year, but just wait until next year, and the year after, and the year after…
4 thoughts on “Apple stock price continues to slip after iPhone announcement”
YOU ARE KIDDING RIGHT??? THE REASON THE STOCK IS PLUNGING AND WILL CONTINUE TO GO DOWN IS THAT THE CONSUMERS ARE NORT STUPID, SURE THEY LOWERED THE PRICE OF YOUR INTIAL PRICE , BUT YOU WILL PAY ALOT MORE FOR IT AT THE END, DO THE MATH GENIUS.
@John Harrison
Let’s address your comments one at a time.
First – no, I’m not kidding.
Second – I agree, consumers are not stupid, but if you’re saying you will pay “a lot more” in the end then you haven’t done the math. The 3G Internet price has gone up to $30 a month. That’s $10 more than the $20 a month Edge package. It will take you 20 months to have reached the same amount of money you would have paid for your iPhone had you bought an original one at $399. By that time another iPhone will likely be on the market. That’s not a bad deal – it’s certainly not ripping the consumer off when they’re getting more service for their added monthly expense.
I don’t know if you’ve looked at Internet pricing at – say – your cable company, but the FASTER speeds cost more money. That’s how it works.
If you live in an area that doesn’t have Edge, then it you won’t be charged for the 3G plan, so you’ll only be paying $20 a month….which means there will be NO price increase for the majority of the country.
The customers only who are looking at a rate increase are current iPhone owners. Blackberry owners, and other customers who have a 3G phone are currently paying $30 a month for their data plans with At&t. So they won’t be getting a price increase at all.
Those of us that are current iPhone owners have 2 choices. We can either upgrade to the faster speed at a cost of $120 a year, or we can stick with the phones we have. I’m sticking with the phone I have, others may decide the speed is worth $120 a year.
The stock will not continue to go down. This is a very smart move on Apple’s part, and it will double, or perhaps even triple the iPhone’s market share very quickly.
aapl always drops this time of year, usually sooner. the anticipation of the phone is what kept it artificially inflated. it will jack back up during the retail season and selloff before macworld in Jan. The stock is cyclical…i’ve been following it everyday since it was 4$
Apple stock fluctuating is like cyclical weather patterns–it just happens and people want to try to explain it in a way that best suits their agenda, so I’m sure that Al Gore has something to do with this. :-p