Reuters: Apple’s ‘beleaguered’ stock sheds 4.8 percent to hit lowest mark in nine months

“Apple shares closed at $52.96, off $2.69, or 4.8 percent, on Nasdaq, their lowest since October 2005,” Duncan Martell reports for Reuters.

“The stock, which was among the biggest drags on the S&P 500 index and the Nasdaq market, has been beleaguered by concerns that updated versions of the iPod may be delayed to the fourth quarter, rather than the third quarter, and that sales of the iPod Nano, introduced last October, have been sluggish,” Martell reports.

Martell reports, “Talk of a rival music device and download service from Microsoft Corp. may also be contributing to the weakness. ‘We are continuing to hear that Microsoft may be much closer to launching its iPod killer, a wireless iPod. I think that could be behind the pressure we are seeing in Apple,’ said Jon Najarian, co-founder of information Web site insideoptions.com. Microsoft will start selling a wireless digital music and video player to compete with Apple’s iPod by Christmas, sources close to the matter recently told Reuters.”

“The new player, which Microsoft has been touting to record companies in the last few weeks, would let users download music and videos over the air, according to one source, a feature that would give it an edge over the iPod,” Martell reports.

“Few experts believe any rival product could dethrone the iPod, but a significant challenger could take a bite out of one of Apple’s chief sources of revenue. Apple has relied on new models and services to re-energize demand for the iPod and its companion iTunes music software and service,” Martell reports. “Its last new iPod device came out in October.”

Martell reports, “But Shannon Cross, an analyst at Cross Research said that, increasingly, investors are coming to view Apple’s share price as driven more by the Mac and with less emphasis on the market-leading iPod. ‘This has become more of a Mac story in the minds of investors,’ Cross said. ‘Can Apple get up to selling 1.5 million to 2 million Macs a quarter and we think that’s possible as we get into the back-to-school and Christmas quarters.'”

Full article here.
Yes, Microsoft is a huge threat. We all know how well they’ve done against iPod for the last half a decade or so. Hey, Microsoft was trying to increase Apple’s iPod’s and iTunes’ respective market shares, right?

Furthermore, it’s really too bad that Apple CEO Steve Jobs stopped all R&D and froze iPod designs in stone forever. It’s just terribly shortsighted for a man who’s supposed to have “vision.”

Anyway, to see the word “beleaguered” attached to anything related to Apple Computer is a weirdly comforting blast from the past, however misplaced.

61 Comments

  1. to be sure, the Microsoft Xbox branded DMP is going to be – should it live up to the rumors – the biggest threat yet to Apple’s iPod dominance.

    But that’s not saying much.

    CREAF and other also-ran makers should be shaking in their boots. Apple on the other hand gets to let MSFT taste the pain of a WiFi DMP just like subscription music. Should it prove successful, no doubt Apple will follow up in haste.

    Still, what MSFT does have going for it is the Xbox and it’s proximity to the home entertainment system. Apple needs that Mac Media mini to come out soon!

  2. macromancer…reaching for straws,dude. Your logic will obviously catch on and Apple stock with skyrocket tomorrow…..LOL.

    Some people aren´t really idiots its just that everyone else is smarter then them…

  3. If this has become a Mac selling story as they say, then obviously there is a lot of concern that Macs aren´t selling as well as hoped.

    Guess that wonderous imamac imapc ad campaign just ain´t doing it….

  4. I told you folks quite some time ago that the US economy was going into a recession because of the increasingly high standard of living.

    Wages have not quite come up yet, but they are increasing at the fastest pace in a long time.

    So eventually things will level out and people will have more disposable income once again.

    What the US government needs to do is raise the minimum wage to $10 a hour.

    Skilled labor should be getting $15-$20 a hour.

    Skilled trade labor should be getting $25-$35 a hour.

    Highly skilled labor should be getting $35-$55 a hour.

  5. In other news, a spokesman for Microsoft released this statement today about the company’s rumored iPod killer:

    “We’re pleased to officially announce that Microsoft will be releasing a bonafide iPod “killer” vapor and everything is coming together with regard to the music labels’ involvement distortion. So very soon, especially in time for the holiday shopping season delays you’ll be witness to the beginning of the end of the dominance of Apple’s iPod wishful thinking. We’re pleased to announce that our year-long plan a few months has been a tremendous success sinking ship and we look forward to reclaiming the title of market leader copycat that we’ve enjoyed across many technology sectors origami. This new iPod killer will be unveiled next month buggy at a special event, and we look forward to the reaction of the mainstream technology press yawn at that time. So, thank you all for coming and we’ll see you again in November not a chance.”

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