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Apple shares slide following keynote

Here's a shocker -- Apple shares slid 0.7 percent (as of this writing) after Phil Schiller concluded the company's last official keyonte address at Macworld Expo. Robert Francello, head of equity trading for Apex Capital hedge fund in San Francisco, blamed "...no true blockbusters" for the market's reaction.

With that, we have a large part of why Apple has abandoned the show. Ten or twelve years ago, Apple needed such a high-profile event to get its products noticed by as many people as possible. Additionally, they'd pack as much into those precious 90 minutes as they could, while they had everyone's attention.

Today, that's not the case. Phil Schiller noted that 3.4 million customers visit their retail stores per week, worldwide. The "lesser" press events, like the annual September iPod announcement, attract all the attention Apple needs. These are much less expensive to produce and allow Apple to release products when they're ready, not when the calendar reads "January." Therefore, there's no cache of goodies waiting for the Moscone Center, which always disappoints Wall Street and adversely affects Apple's stock price.

Sure, it's sad to see Apple go, but the "why" is clear.

[Via MacDailyNews]

Here's a shocker -- Apple shares slid 0.7 percent (as of this writing) after Phil Schiller concluded the company's last official keyonte...
 

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opinionated

Most of the market fluctuations are due to speculators who are hoping to catch the next ipod or iphone wave; when it doesn't come they dip. Frankly we shouldn't expect new products to come to market for at least 6 months until the economy finds its feet. Like Quad Core Blu-Ray iMac Extremes (drool) and OSX 10.6

I agree with an earlier post though, a new black-gloss & aluminum mac mini with a spec upgrade would be a good way to perk up sales for the low-end consumer segment which is a growth area at the moment - a faux pas on Apples part in my opinion. :^)

January 07 2009 at 6:05 PM Report abuse rate up rate down Reply
Randy

- New iWork/iLife - :-)
- New 17" MBP, meh... (I don't care for it, but I understand that others do.)
- No Nehalem EP Mac Pro. :-(
- No uni-body Mac Mini. :-(
- No word yet on Snow Leopard :-(

January 07 2009 at 10:55 AM Report abuse rate up rate down Reply
Jason

I'm sure Apple will do fine for years to come, but damn! Abandoning this type of product unveiling takes all the fun out of it! For years now, at these Macworld keynotes and other press conferences, they've unveiled astounding new products with clever details that nobody would have ever dreamed of. Until now, I guess.

January 07 2009 at 8:12 AM Report abuse rate up rate down Reply
YouFaceTheTick

DRM free itunes = utterly meaningless. Burn itunes to a CD-RW, rip and you have DRM-free itunes.

MacBook Pro 17 - lame. 1000 recharges is 3 years or so.

What else? Yeah, nothing. This was the biggest bust of a Keynote I can recall. No iPhone changes, no Mac Mini, no AppleTV, nothing new!

Yes, I'm bummed as I was going to buy a new Mac Mini today. Instead, I suspended Directv (until next football season for Sunday Ticket), ordered Cox Cable for an extra $20 a month over my phone/internet and I'll live with a generic TV and our Roku.

January 07 2009 at 12:42 AM Report abuse rate up rate down Reply
Nick.Rheinwald

Yo dude, little typo in the first paragraph. It's not "keyonte," it's "Chianti." You were spelling phonetically, I guess.

January 07 2009 at 12:16 AM Report abuse rate up rate down Reply
Charles

There are at least two island territories in the U.S. surrounded by reality: Wallstreet and the District of Columbia.

The side effect of rumors is that it sets certain anticipations and additional analysis in motion. When unsatiated by reality, it is apparently better to bash Apple shares and second guess that $24 B in the bank, than wait awhile longer for the inevitable special event that addresses additional new hardware and Snow Leopard.

As those in congress most likely lack the financial management credentials to be reconciling our money and the national debt, there are a few representative Wallstreet analysts who remain far too incontinent in their interpretation of Apple's fertile business plan and product release schedule.

January 06 2009 at 8:00 PM Report abuse rate up rate down Reply
Luke James

if the stocks did NOT fall after a keynote, my eyes would burst out of my head. it just shows how ludicrous wall street is that they overreact to simple product announcements EVERY TIME. and said overreaction is ALWAYS negative. it a ridiculous pattern. i've learned to ignore it. guess i won't have to anymore.

January 06 2009 at 7:02 PM Report abuse rate up rate down Reply
frogbat

oh another reason for apple to abandon these shows is that they can set their own agenda and schedule! - maybe not having to have updates to hw and sw on set dates and at set intervals will improve QA

January 06 2009 at 5:59 PM Report abuse rate up rate down Reply
balls

I'm guessing the "surprise" part is sarcasm; I thought after every keynote, the stock tumbles a bit, because of the rumor vs actual announcements.

Didn't TUAW run a story on "What if you had purchased apple stock prior to each apple keynote event, then sold it after?"

Anyway, the economy is in a tough position, and despite apple marketing "premium" products, I believe they are in better shape than many other companies.

Still, I'll wait for AAPL shares to drop to $40 before buy more :)

January 06 2009 at 5:42 PM Report abuse rate up rate down Reply
frogbat

it made sense for apple no matter what analysts may have read into apple pulling out. Also, it's been part of their strategy - pulling out of international expos and speciality shows like NAB. As the post pointed out, apple just needs to hold a press conference to make a splash. Products which would have made the tail end of press coverage such as iwork and ilife at previous macworlds were given centre stage.

i wonder if the timing of new products will coincide with CES announcements from their rivals? kinda to put spokes in their wheels

January 06 2009 at 5:08 PM Report abuse rate up rate down Reply
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