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  • Shares of Apple, Sprint Tank Following iPhone 4S Announcement

    What does it take to make tech stock traders happy? Apparently nothing that Apple said today.

    Following the introduction of the iPhone 4S, shares of Apple slid precipitously, touching levels not seen since Steve Jobs resigned as company chief August 24th. At one point, shares of Apple were down 5% today, well below $360 per share. Although the stock price has since recovered some lost ground, it's clearly not a banner day for AAPL.

    According to CNBC, investors and Apple fans were looking "to be blown away by some amazing new surprise." When they weren't, shares swiftly tanked. "It's been 16 months and all you've got is an A5 processor in the existing iPhone 4," Wall Street analyst Colin Gillis of BGC Partners tells CNBC.

    Of course, Apple wasn't alone in its stock price free-fall. Sprint went along for the ride before similarly recovering the worst of its losses.

    Sprint initially saw a 10% dive in its stock on Monday, after a Wall Street Journal report indicated that the carrier was poised to lose money on its iPhone deal until at least 2014. "This is a huge gamble for Sprint and people are justifiably worried that they won't be able to make any money doing it," Stifel Nicolaus analyst Chris King says. "It's not a company that's in great financial shape right now."

    Source: CNBC
    This article was originally published in forum thread: Shares of Apple, Sprint Tank Following iPhone 4S Announcement started by Michael Essany View original post
    Comments 28 Comments
    1. Timstanley's Avatar
      Timstanley -
      I think this is a cleae sign
    1. NumbaOneI's Avatar
      NumbaOneI -
      yeaa little too late there buddy
    1. MOJO5873's Avatar
      MOJO5873 -
      Take note from Netflix, don't disappoint your customers.
    1. punjabi212's Avatar
      punjabi212 -
      Not surprised.
    1. joliano24's Avatar
      joliano24 -
      Totally disappointed , I believe this is the time for apple to go down and the other go's up
    1. ktizzle's Avatar
      ktizzle -
      This was an epic disappointment. I guess I can at least upgrade to an affordable i4. Or maybe I'll just get tue galaxy S II instead? Get with the times Apple. You're getting left behind. SMH
    1. boxxa's Avatar
      boxxa -
      Apple tanked because people freaked out. Smart investors see that Apple is a solid company all around and moving strong. Their phones are more in businesses and being rolled out, Mac sales are rising, iPod sales are still massive, and the iPhone will still be successful for the general public until the iPhone5 next year. The stock is almost back to where it opened and it will continue to go up when people see the rush for the iPhone 4S
    1. iamutman's Avatar
      iamutman -
      Can someone please define specific criteria for "ground breaking?" I hear a lot of people being no disappointed but no rationale for it, or rationale based on oversimplifications that are borderline fiction. "An iPhone 4 with an A5 processor inside?" Did that wall street guy hear the presentation at all?

      The only two things I can think of are 4G capability and a larger screen, but even those don't sound very appealing to me. If you're going to complain, at least be specific in your complaints. Otherwise it's just noise.
    1. RandyTG's Avatar
      RandyTG -
      If people didn't have sky high expectations about what they want to see on the next iPhone, they wouldn't need to have a knee jerk reaction when their expectations are not met. Welcome to life.
    1. feidhlim1986's Avatar
      feidhlim1986 -
      It's a side effect of the iPhone 4's (plural for 4 not 4S) success. The iPhone 4 was and still is such a quality product it's hard to top it. Today would have been a lot more impressive if it was also the first time we say iOS 5.
    1. NGR001's Avatar
      NGR001 -
      No wonder Steve Jobs retired. Walk away while your still ahead...
    1. trimetfan's Avatar
      trimetfan -
      If I recall right. People acted this way too when the iPhone 3gs came out. "What! It's just an updated 3g! I'm not buying one!" And the lines were long on the release date for the 3gs.
    1. Mysterion's Avatar
      Mysterion -
      Timstanley is late lol
    1. The Man of Sand's Avatar
      The Man of Sand -
      Lol too funny
    1. sammo123's Avatar
      sammo123 -
      AAPL stock is back on the rise. .1% rise since the close of the market
    1. Micara57's Avatar
      Micara57 -
      This has nothing to do with the 4S at all.

      Apple shares have fallen after every major release, not just the iPhone. After the iPhone 3G it plummeted 4.1%, after the 3GS it was down 4.6%. The iPhone 4 only saw a 1% loss, and the iPad 2 a 1.4% loss.

      Though the iPhone 4 and iPad 2 had a smaller loss, it was still a loss nonetheless.
    1. kraziebone's Avatar
      kraziebone -
      Quote Originally Posted by trimetfan View Post
      If I recall right. People acted this way too when the iPhone 3gs came out. "What! It's just an updated 3g! I'm not buying one!" And the lines were long on the release date for the 3gs.
      This is true but the iPhone 3GS came out less than a year after the 3G. The other big difference is that the iPhone competitors are releasing phones at a increasing pace so it's not really the same atmosphere. I was very disappointed personally, specifically since we have waited almost a year and a half. What does that mean for the iPhone 5? Are we waiting another year and a half cause that's too slow a pace for the current environment especially when every other year is only an internal update. It just doesn't cut it to release a new iPhone every 3 years in the current environment. Then to top it all off, this was Tim Cook's first "big" announcement as CEO and it doesn't generate excitement when he releases 4 months later than usual with standard internal updates. What took so long to release the 4S?
    1. Phillip Swanson's Avatar
      Phillip Swanson -
      The stock market is a joke. The people who trade are a joke. Everything is based on speculation, hype, and people looking to short sell for a profit. If today's dip were really indicative of Apple's failure as a company you would have seen a RIM style loss in market cap, or Bank of America like death-slide. Apple on the other hand is as safe a bet as there is in the Tech market. They consistently beat sales estimates, sit on a ginormous cash horde, and are industry leaders in at least three different industries (cell phones, tablets, MP3 players, Ultra-portable laptops). Apple will recover from today's little setback and likely shatter sales records once again. In case everyone forgot, no one on Sprint has an iPhone yet. Soon everyone will.
    1. sammo123's Avatar
      sammo123 -
      And they have basically already recovered so not a big deal at all
    1. dfheje's Avatar
      dfheje -
      The guy in the article is retarded. The A5 is new and only in the iPad 2. The A4 is in the iPhone 4.