AAPL takes a hit despite iPhone 4S news (Updated)

Apple's share price has dropped dramatically after today's announcement of the iPhone 4S. At 3:07 PM EDT, AAPL was down over $16 per share to $358.51, although it could recover before today's market close.

While this doesn't look good for Wall Street's enthusiasm for the new device, the stock drop is actually quite normal for the day of an Apple announcement. We've seen similar results after announcements of most new Apple devices, with the stock usually recovering or rising the next day.

The stock price for new US iPhone carrier Sprint doesn't seem to be reacting much in one way or another to the announcement. At press time, the company's stock was selling at $2.68 a share, down $0.06 for the day. Shares in Verizon and AT&T were relatively steady as well.

Of course, most of the responsibility for the lackluster stock price for Apple could be tied to the world economic news today. Fed Chairman Ben Bernanke's comment that "The economic recovery is close to faltering" has resulted in an overall decline on the markets, with the Dow-Jones Industrial Average down 162, S&P 500 down 12, and NASDAQ down 17 at press time.

Update: AAPL closed today at $372.50, only down $2.10 (-0.56 percent). The DJIA, NASDAQ, and S&P 500 all finished the day up. It's amazing what can happen with the market in only an hour... Turns out that the "hit" was more of a "hiccup."

View Tags

Source: http://www.dailyfinance.com/quote/nasdaq/apple/aapl

Categories

Apple iPhone

Apple's share price has dropped dramatically after today's announcement of the iPhone 4S

Add a Comment

Sign in »

31 Comments

Filter by:

Vera Comment

the stupid thing about this is the stock would have gone up if the exact same hardware was called iphone5.

October 04 2011 at 9:40 PM Report abuse Permalink +1 rate up rate down Reply

Brian

Apple effectively raised the price by $100. Not good. In the past, they announced current technology (faster CPU, bigger memory, etc) while keeping price points similar. This time, the top end increased 33%. Kind of foolish. That, and it is meh.

October 04 2011 at 7:22 PM Report abuse Permalink -2 rate up rate down Reply

smakusdod

Buy on rumors, sell on news. Stocks 101.

October 04 2011 at 5:45 PM Report abuse Permalink +4 rate up rate down Reply

Tom 0126

sip, they only tell you size doesn't matter to make you feel better. No one has ever said that to me. Fact is, the iPhone 4s is a huge disappointment. Sorry to hurt your feelings.

October 04 2011 at 5:05 PM Report abuse Permalink -1 rate up rate down Reply

1 reply to Tom 0126's comment

sip

I have no worries in that department so you haven't hurt my feelings.

October 04 2011 at 7:27 PM Report abuse Permalink -1 rate up rate down Reply

@HuntLane

Buy the rumor, sell the news. Every Apple announcement goes this way.

October 04 2011 at 4:52 PM Report abuse Permalink +4 rate up rate down Reply

sip

How fickle is human nature: would the same internals in a new casing and branded iPhone5 have made any difference?

The iPhone4 is the best designed phone on the market: silky smooth and very sexy, just like the thigh of a nubile dancer. Even Jonny Ive is going to be struggling to design a better looking phone. The only real moan-factor is that there isn't a 4" screen, but then they do say that size doesn't matter, it's what you do with it that counts.

iPhone4S is here, iPhone5 isn't -- people need to live with it.

October 04 2011 at 4:47 PM Report abuse Permalink +3 rate up rate down Reply

KenG

"Despite" iPhone 4S news? How about, BECAUSE of iPhone 4S news.

October 04 2011 at 4:39 PM Report abuse Permalink -1 rate up rate down Reply

tomthmb2

The headline's wrong. It should be "AAPL takes a hit BECAUSE of iPhone 4s news."

October 04 2011 at 4:32 PM Report abuse Permalink -1 rate up rate down Reply

2 replies to tomthmb2's comment

icerabbit

They could have announced pretty much anything. We've seen this time and again. Apple stock drops on the day of announcements. Investors are locking in the gains they made recently and will jump back in. Sell high. Buy low. Typical Apple announcement day stuff.

October 04 2011 at 5:36 PM Report abuse Permalink +3 rate up rate down Reply

duncsauce

in America maybe, but the 500 million new possible subscribers in China will help Apples bottom line. Come spring 2012, they will release iPhone 5 and make all those people in China buy again. This is the first legal option for the people of China. Am I wrong?

October 04 2011 at 7:05 PM Report abuse Permalink rate up rate down Reply

icerabbit

But it typically drops after an event ... doesn't it?

October 04 2011 at 4:25 PM Report abuse Permalink +4 rate up rate down Reply