“Apple officials have offered no detailed explanation regarding the source of a memo sent to Apple employees the morning of May 16 that falsely claimed that there would be a delay in the release of the company’s iPhone and the Mac OS X Leopard operating system,” Daniel Drew Turner reports for eWeek.
“Soon after the purported internal Apple e-mail was published on the consumer electronics Web site Engadget.com, Apple’s stock price fell from $108.83 to a low of $103.42. The stock recovered by the end of the day, and moved higher on May 17, but at one point nearly $4 billion of Apple’s market capitalization had evaporated,” Turner reports.
“Engadget quickly posted an update to its story, saying the e-mail was a hoax, but still stating that it was ‘an actual internal Apple e-mail that went out to thousands of Apple employees earlier today,'” Turner reports. “However, Natalie Kerris, spokesperson for Apple, based in Cupertino, Calif., contradicted this, telling eWEEK on May 17 that the e-mail ‘did not come from Apple.'”
“Kerris declined to discuss any potential investigation into the provenance of the e-mail,” Turner reports. “A spokesperson for the SEC, based in Washington, said he ‘could not confirm or deny’ whether any SEC action would be taken. Intentional manipulation of a company’s stock price can be a serious crime, but, he said, the SEC decides what to pursue based on a ‘case-by-case analysis.'”
Turner reports, “How easily investigators can find the source of the fake Apple memo may depend on whether the memo was sent by a market speculator in the United States or by a sophisticated criminal ring operating in some region far from the reach of federal prosecutors.”
Full article here.
Engadget should be held at least partly responsible for the idiot’s who sold their shares on unconfirmed rumor and speculation based on nothing more than an “email.” Confirm, confirm, confirm – then post the story.
The thought plickens.
well, I’m not gonna lose any sleep over it … nor any money, for that matter
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Dan Rather is gone because he didn’t check his sources. Engadget forgot the code and did not double check.
I won’t take them seriously anymore.
It came from MS.
It was Zune Tang.
Probably originated from Microsoft
Somebody at the SEC should quickly check Balmer’s mail server!
The fact that people actually believed that this lie was true says a lot about people’s perceptions about Apple’s (in)famous secrecy, recent abrupt changes in expected releases of iPhone and Leopard, and history of ethical lapses in backdating stock options. That is, North Korea is a more open society than Apple, Apple did embarrass itself by retracting it’s previous promises of product release, and Apple did admit that a certain number of high-priced executives disobeyed SEC rules and regulations. Apple set itself up for this rumor.
Ryan Block of Engadget has posted a lengthy defense of his poor journalistic practice, but the one thing missing from his essay is “I’m sorry, we screwed up.”
It’s interesting to see the still increasing number of responses to his statement. Many are like mine, pointing out it’s widely accepted for responsible publications to get two independent sources to confirm a news tip that will have major financial impact.
Yet there are loads of the “I love you Engadget, keep it up” posts who say they don’t understand why it was a problem.
As a longtime reporter and editor, it’s upsetting to see neither Ryan nor his supporters get that what he did violates basic journalistic ethics. Nor does the guy have the character to apologize for what amounts to a serious mistake that actually could have gotten someone fired at a newspaper. He deliberately made the decision to “Screw accuracy, I’m going to be first” without caring about the consequences.
Ryan’s main defense seems to be that Engadget is a blog, not a newspaper, and blogs are supposed to be “light and fast.”
Notice he didn’t say “light and fast and accurate.”
Funny thing about newspapers, they all have this newfangled option called a “Web site” now, and it can be updated quickly, just like a blog.
She wore lipstick. She wore a short dress. She wore high heels. She set herself up for rape.
@Island Girl,
Notice he also didn’t say “light and fast and not to be taken seriously.”
As with any blog . . .
Someone set up us the bomb.
maczealot – sorry, but you’re an idiot. It has nothing at all to do with Apple’s secrecy, which is simply good practise from a company with information every competitor wouldkill for..
MDN got the email and rang Apple and got a straight answer.
What’s secret about that?
And as for the options issue, the SEC said Apple had been open and up front.
Take your conspiracy theories back with you to your office ijn Redmond chum.
@ Islandgirl
It’s too bad he can’t just cop to this. If his “light and fast” blog hadn’t read “we have it on good authority..” I’d buy his argument. But that was just plain BS. Good riddance, journalistic integrity!!!
-c
JadisOne said
“Engadget should be held at least partly responsible for the idiot’s who sold their shares on unconfirmed rumor and speculation based on nothing more than an “email.” Confirm, confirm, confirm – then post the story.”
Please, I know sueing someone else because of your own stupidity is all the rage these days, but to hold engadget responsible is ridiculous.
How many times has Apple beat all the wallstreet predictions, announced record breaking profit, new products, higher sales in QtoQ, and YtoY, and had their stock drop way more than 4% because the ass,… ooops, I mean ANALists said oh yeah this quarter was nice, but there is no way they can do it again. And to top it off, it took weeks for the stock to come back to the previous price and go beyond.
This was just some more evidence that hobbyist daytraders are basically stupid. Anyone who has followed Apple stock for more than a few months knows that it is extremely volitile, it will shoot down for no apparent reason, and then go soaring.
If everyone is so convinced and concerned that there is wrong doing or a conspiracy of some sort, follow the money. NO, not the money lost by stupid, braindead day traders who ditch everything on a 3-5% drop, but rather look to any gigantic block purchases made during the dip.
Anyone who bails on a 4% drop based on a freaking rumors website deserves the blood bath.
If you gave this rumor a millisecond of credibility then you are as guilty of rape as the editors at Engadget. Besides, have you heard of the fable of “The Boy Who Cried Wolf”? If you are unfamiliar with this fable, the take home message is that telling lies and engaging in deception leads to painful experiences.
“but rather look to any gigantic block purchases made during the dip.”
EXACTLY – that is the real meat of this story. =)
ChrissyOne,
Yeah its the meat, but no one seems to be looking in that direction….. They are too concerned with crucifying a rumor blog over their own stupidity.
So, to quote Clara, “wheres the beef?”
MW= designed ?? So maybe there was a conspiracy? After all, the MDN magic word is lots more accurate than most rumor blogs. (Including MDN!)
“Notice he also didn’t say “light and fast and not to be taken seriously.”
The thing is, Engadget presents itself as a serious source of tech information, not just another “Rumors” site. And apparently, folks who play the stocks saw it that way, too.
@ChrissyOne
My point too, if he’d just said, “Hey man, I’m sorry I made a mistake. We’ve changed our policies as a result,” I’d have thought more of him.
All the dancing around really isn’t doing Engadget or Ryan Block any good. It’s just prolonging the debate.
“If you gave this rumor a millisecond of credibility then you are as guilty of rape as the editors at Engadget.”
I gave this rumor zero credence. Matter of fact, I happened to have bought on that same day. So, what is your point?
My point was that Apple’s behaviors (evidenced to be on the up-and-up) does not clear the way for malicious behavior.
How many set’s of teeths do you go through when reeding some of these post’s?
I can get them wholesale.
@ Macaday:
How many telephone receptionists does Apple have?
How many people actually called Apple after Engadget published this rumor?
When did you call?
Who did you speak with?
What questions did you ask?
How long was your conversation?
Do you consider yourself a gullible person?
Who at Apple has sufficient credibility to convince you that the report was false?
If someone falsely accuses you of an indiscretion, do you defend yourself by remaining silent? What are people supposed to think if Apple doesn’t aggressively defend itself?
Where was Apple’s counterattack on Apple’s homepage? Apple did nothing to dispel the rumor. Apple’s failure to act and act promptly only contributed to the rumor’s credibility. Maybe Apple’s integrity is so damaged that no one would have believed them.
Secrecy and silence are not the same, moron.
Apple admitted that several of its executives in Cupertino violated SEC rules and regulations. The conspiracy is all their doing, not mine, even Apple and Steve Jobs have acknowledged that.
Well, smartass, are you able to answer these questions? Hmm?
How much credence did you give the reports that backdating stock options was occuring at Apple?
I’m more concerned as to why a Microsoft Office 2007 Vista ad is showing up on this page right now!
Ryan Block is admittedly anti-Apple (at least anti-iPod) and in my opinion is extremely thin-skinned and defensensive toward anyone daring to criticize his beloved Rio Karma.
In most blogs I wouldn’t care and woulod probably even be amused, but as several readers have pointed out Engadget and especially Ryan, likes to present itself as a serious source for tech news. At least when it’s convenient.
I would prefer that my daily gadget news site of choice be a little more upfront about it’s biases and a little less quick to deflect blame and pass the buck onto others and have switched to Gizmodo which seems to run exactly the same topics only with more insight and humor. Not to mention, better journalistic standards.
I think, it’s funny. At one time, bloggers claim to be real journalists, with all the rights to protect their sources and such.
But come the wet ass hour, it’s: ‘We’re just bloggers, don’t measure us with the standards of journalism!’
You can’t have it both ways.
I did it. I needed the 4 billion. I was hungry.
@maczealot
your a funny idiot. hmm? idiot
Looks like someone at Apple was pissed off enough to cause some damage. The question is, why did they choose Engadget?
MDN is a bunch of hypocrites. How many rumors has MN posted that are completely false. MDN has got some huge huevos to criticize Engadget for a sin that MDN willfully commits nearly every day.
Islandgirl,
Reuters, SeeBS and other such outlets have set the standard today for “news”. Just look for news in a field that you really know something about and you will find the 80% of the time the “news” is incorrect or isleading.
@ @ macfanatic,
When the news broke that there may have been improper handling of stock options at Apple (because the backdating itself is not illegal), I took the news very seriously. However, I did not have a knee-jerk reaction of buying or selling stock, launching speculative news on the internet, or stirring the rumor pot.
I read. I listened to what others thought about the news. I watched tech stocks. I monitored the behavior of Apple in terms of business practices, product releases, and response to the news.
What, exactly, is your point? Do you have one?
Rove!
When the news broke that iPhone and Leopard would be delayed, again, I took the news very seriously. However, I did not have a knee-jerk reaction of buying or selling stock, launching speculative news on the internet, or stirring the rumor pot.
I read. I listened to what others thought about the news. I watched tech stocks. I monitored the behavior of Apple in terms of business practices, product releases, and response to the news.
What, exactly, is your point? Do you have one?
I think that you made my point. Too bad not everyone is as clever as you. Maybe you should write a book and become rich and famous.
Steve Jobs really stepped in it this time. After publicly retracting his previous release dates for iPhone and Leopard, he has raised the expectation levels for these two products higher than ever. Now, if neither product is twice as fantastic as anticipated then they will be criticized as being only half as what was desired. It sucks to only promote vaporware and “top secret feaures”, but only less worse than selling an inferior product and the consumer will make that decision, not Jobs.
How many set’s of teeths do you go through when reeding some of these post’s?
I can get them wholesale.
Appreciate your offer of false teeth, but I still have my own, since I don’t grind them when reeding(sic) these post’s(sic).
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The issue behind the Engadget debacle relates to journalism, a field in which I’ve worked for a long time, so I expressed my viewpoint.
@ @ macfanatic,
The WOW clearly starts with your posts. Man, I’m so glad you put me in my place.
Not only have you enriched this site with valuable information and deep wisdom, you’ve also blessed us all with an unshakable sense of security and groundedness that we just wouldn’t have had without your generous gifts of knowledge and caring.
Best Wishes and FUCK OFF!
PS: Make a point, or get off the stage.
macfanatic,
What made you so certain that Engadget’s “rumor” wasn’t actual fact? I mean, Apple was investigated by SEC for weeks before slaying Fred Andersen and Nancy Heinen on the altar of Apple’s tarnished respectability and lost credibility. Are you sure you didn’t give Engadget the same benefit of doubt that you gave Apple? Why weren’t you as consistent in your beliefs and attitudes with Apple’s SEC fiasco as Engadget’s journalistic reporting?
I made my points. I haven’t read anything that you’ve threaded that comes close to an intelligent comment. Admit it, you’re a mindless macfanboi, a pathetic Cupertino lackey, a nonthinking moron, a weak-minded buffoon, a sad product of U.S. education. Keep it up, you only embarrass yourself.
To All:
Apple posted its Leopard delay news on its own web site.
Apple posted its own stock irregularities findings on its own web site BEFORE the SEC investigations began.
Apple posted its own “Green Statement” on its own website.
That said, Engadget is NOT Apple.
——————-
Horse’s Mouth.
@ macfanatic (whoever might be the right one):
You are right with this one: “Apple posted its Leopard delay news on its own web site.”, but the Apple website says “October 2007”:
http://www.apple.com/pr/library/2007/05/01wwdc.html
One capable to read will know what I mean.
To All:
Apple posted its Leopard delay news on its own web site after promising the world that Leopard would NOT be delayed. Congratulations, Apple, you get a cookie for making another promise after admitting that you first told a lie.
Apple posted its own stock irregularities findings on its own web site BEFORE the SEC investigations began </b>because it would be infinitely more embarrassing to allow Engadget or MDN or Macworld or, well you get the picture, to do it first. This isn’t virtuous, it’s damage control.</b>
Apple posted its own “Green Statement” on its own website. Duh!
Apple did NOT post a statement denouncing the e-mail that iPhone and Leopard would be delayed. How come? Maybe there’s more truth to the rumor than Apple is willing to admit. No vacation time for Apple slugs till 2008.
You say, more than once, that several Apple execs violated SEC rules. Backdating is legal, so only the CFO and the head of the Legal Department made any mistakes.
Two is several? Only to some asshole with an axe to grind.
WWDC 07 August 2006 11:24 A.M. <b>”We plan to get done with Leopard and ship it this coming spring. We think we’re going to get it out next spring.” <b> Steve Jobs actual quote.
Well, macfanbois, this what Jobs said. How much credibility to you have in Jobs now?
Well, then you do admit that I am correct in principle. You only wish to argue semantics. Thanks!
To Apple or Mac or Whoever…..
I don’t have anything to bitch about like y’all do, and that is pissing me off!!!
MW:party
It was Fred Anderson.
The lesson to be learned from all of this is that rumor sites trade in RUMORS. If someone based their investing in rumors then all I can say is that they are very brave or have a lot of spare cash to speculate with.
Whenever any site like Engadget or MDN (which only passes on details from other sites) post rumors, it is impossible to verify if it is correct because Apple have always refused to comment on rumors. The only exception is when like this time a rumor has created some kind of panic.
Most web sites are not as liable for their content as news print are because of the lack of regulation. People should be aware of that before they start investing or divesting because of info from a web site.
I am not defending Engadget, because they did a disservice to their readers. However, an investor should be sensible when speculative information like that appears.
@ Islandgirl,
I used to go through a lot of sets of teeth reeding posts, but what stopped me eventually was when I had to see my Dr. My mouth had been cut by the reeds leaves so wide I looked like Zippy! Needless to say, there are a lot of reed instrument players out there, no thanks in part to my efforts. Aaaa Ha! Ha! haaaa!!!!!:-)
Ps. To the argument above, action speaks louder than words!
I want to ride the pony!
Please ignore everything I say. I’m actually a fake troll poster that writes cleverly inane bullshit to get you all riled up and score more hits for the site. I actually believe almost none of what I say.
thanks!
Please ignore everything I say. I’m actually a fake troll poster that writes cleverly inane bullshit to get you all riled up and score more hits for the site. I actually believe almost none of what I say.
thanks!
Please ignore everything I say. I’m actually a fake troll poster that writes cleverly inane bullshit to get you all riled up and score more hits for the site. I actually believe almost none of what I say.
thanks!
Please ignore everything I say. I’m actually a fake troll poster that writes cleverly inane bullshit to get you all riled up and score more hits for the site. I actually believe almost none of what I say.
thanks!
Nothing riles a macfanboi more than the “heresy” of expressing dissatisfaction with Apple. It shakes their little worlds to pieces to read negative comments about Apple or Steve Jobs. Grow up, children, this is how adults run the realm.
Apple and Steve Jobs had better have some kick ass products and presentations at WWDC 2007 or each is going to receive more criticism and ridicule. No promises this time, Steve. You had your delay, it’s time to pay up.
Time to ‘pay up’? What? What exactly does Steve Jobs owe you?
Are you calling a CEO out on the interweb?
And you’re saying you’re an adult?
Wow moment.
What does Steve Jobs owe me? Let’s see, where is that list? Oh, here it is!
1. Promises made to be filled without excuses and equivocation.
2. Quality components, not substandard components.
3. Quality manufacturing, not shoddy construction.
4. Truth in advertising, not imprecise and ambivalent specifications.
@ Whatever, or whoever you are . . .
I said those things to Steve Balmer. He said, “You’ll buy XP SP3 no matter WHAT we call it, and you’ll gog damned well like it!” Then he threw a chair.
“What does Steve Jobs owe me? Let’s see, where is that list? Oh, here it is!”
Apple makes products. Buy them.
Or not.
Neither Steve Jobs nor Apple owes you anything. Your sense of entitlement is nauseating.
It’s obvious that my expectations of Apple are too rigorous and demanding for you to bear.
OK, what do you as a consumer expect from Apple? And how do justiify your expectations as divine and uncompromising rights and mine are “nauseating” and undeserved presumptions? Hmmm?
I’m waiting!
I don’t expect anything from Apple. They make products. If I like them, find them useful, and feel that they are a good value, I buy them. If not, I don’t buy them.
Just like any other company that brings products and/or services to market. Take them, or leave them.
How can anyone take you seriously?
Obviously, if you delay to purchase one Apple product then buy another Apple product at a later date you had some prior expectation(s) of what was a desirable product worthy of your time and/or money. That is, you made a decision whether to purchase or not to purchase based on your expectation that a succeeding product would be superior in price and/or performance than a previous product. When I use the word “purchase” I mean either spending disposable income or taking a loan.
For example, if you withheld extending your current mobile phone service because you want an iPhone you expect that iPhone to give you something more than your current mobile phone provider. However, if you choose to wait six months to purchase an iPhone you implicitly expect that future models might be (i) less expensive, (ii) include more features, (iii) exhibit more physical robustness, etc. I will make the assumption that you can follow this line of reasoning.
Any time a consumer (i.e. you) makes a purchase it is because they believe that they expect some benefit by spending their money at that moment. Any time a consumer (i.e. you) refuses to make a purchase it is because they believe that they expect some benefit by saving their money for some future product of greater value and/or performance.
You know, you have admitted that I am absolutely correct and that you are a self-deluded and logically deficient buffoon who lacks even simple understanding.
“Your sense of entitlement is nauseating.” Windows Fanboy
To whit,
1. Promises made to be filled without excuses and equivocation.
2. Quality components, not substandard components.
3. Quality manufacturing, not shoddy construction
4. Truth in advertising, not imprecise and ambivalent specifications.
Yeah, why would anyone expect the four conditions above. Oh, I know, intelligent and astute people! Please tell us that you are neutered.
@ @ Windows Fanboy,
292 words of absolute nonsense.
Congratulations on completing this typing exercise.
Why don’t you share with every one why you think my threads are “nonsense”? Your brilliant reasoning should astound and amaze us. Go ahead, explain yourself. Don’t hesitate to reveal your brilliance. Don’t be shy. C’mon, you know how much we would enjoy reading your genius. Don’t deny us.
Can you do it less than 292 words? I’ll bet you can. Nothing can hinder the splendor of your legendary sagacity, right?
Waiting!
“I can count this many (i.e. 292)!” Utterance attributed to Windows Fanboy.
Very good! Here’s a cookie. Do it again and you’ll get another treat!
Speechless, thoughtless, clueless. I’ve pissed on logs with more sense than you. I apologize for over estimating your intelligence.