Apple Stock take $10 Billion Dollar Hit after iPhone Price Drop

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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.

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Kokou Adzo

Kokou Adzo is a stalwart in the tech journalism community, has been chronicling the ever-evolving world of Apple products and innovations for over a decade. As a Senior Author at Apple Gazette, Kokou combines a deep passion for technology with an innate ability to translate complex tech jargon into relatable insights for everyday users.

8 thoughts on “Apple Stock take $10 Billion Dollar Hit after iPhone Price Drop

  1. The deal about the reduced price per unit could go either way. Yeah, they’re making 33% less per unit. But that simply means that if they sold 1000 iPhones at $600 a piece, they made $600,000. They have to sell 1500 iPhones to recoup that difference. I don’t think they’ll have any problem increasing sales by 50% after this cut…in fact, I wouldn’t be surprised to see sales jump up 2x.

    I think the biggest factor is customer backlash.

  2. I believe that the cut was needed to open the door for more users of the iPhone. I love mine and have no problem that I spent full price to get it day one but I know many people that could not afford it and now can…

    This is the beginning of MANY great things to come from this company, they have always been loyal to their customer and I have no doubt that they will continue this… Their products last and as long as they continue to update the device, I don’t feel cheated.

    I do believe that we can expect a 16G within the next four weeks before the holiday…

    The Stock will go back up, it is a VERY solid company with an outstanding foundation…

    B. / Brooklyn

  3. Okay, so Steve is gonna give early iPhone adopters a $100 back. Let’s see if that’s reflected in the stock price in a day or two.

    So guys, any predictions on whether Apple will still make a conservative target price of maybe $175 a share this year. Apple’s stock is so darn volatile that I doubt it can gain any footing. Three months is still a long way to go, but every little pimple on Steve’s butt drops the stock back. I’m thinking it won’t get to $175 until after the Christmas holidays.

  4. @Odo

    I would have to agree. The most dangerous part of investing in Apple is that a bored blogger can send the stock flying up and down completely by accident. I doubt it will get to $175 before the 4Q earnings are released…but I have a very good feeling those earnings are going to be phenomenal.

    Also…DS9 was the best Trek.


  5. Apple stock always does this on “special event days”! All the hype builds and even when they have great things to deliver, there is always a letdown compared to the hype. Hell, it went way up in the days leading up to the “event”. It my get to $175 by the end of the year but that is of little consequence. if they keep going into the consumer electronics area, it will keep going up until Steve leaves or dies.

    One of the things that makes Apple such a great technology company (from a consumer and share holder point of view) is that they bring out updates to products that have almost no competition in the market! What other company would replace their whole line of products in a category with new (not just cosmetic) updates when they have a 70% market share? This is one of the reasons we get huge price drops on new technology! (see the iPhone). Apple could completely stop developing iPods for three or four years and they would still have the best players on the market! Yet they don’t! We’ll get a new batch in 12-18 months max!

    I may retire early!

  6. I haven’t touched my stock since Mr. Jobs came back on board of Apple. And in the pasted ten years there have been many valued friends and advisors telling me that this or that year was the time to move the stock. We are just now seeing into the future. RELAX my Apple friends and have some MD 20/20! It’s good for the heart, and the BEST IS YET TO COME!


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