Apple shares take a beating following new iPods, iPhone price drop

“The iPhone buzz is wearing off,” Scott Moritz reports for The Street. “AT&T shares dropped 2% Wednesday after Apple made two moves that took a little more sparkle off this summer’s heavily hyped smartphone debut.”

MacDailyNews Note: Apple shares currently stand at $137.50, down $6.66 (a nice number, if you know Apple history), or -4.62%, on heavy volume of 78.78 million shares.

“First, Apple rolled … the iPod Touch — a touchscreen iPod that essentially strips the cell phone chip out of the iPhone,” Moritz reports. “Then, in an unexpected move, Apple killed the 4-gigabit iPhone and slashed the price of the 8-gigabit iPhone by $200, to $399.”

“The move will add more evidence to the speculation that the iPhone, while causing quite a buzz, may not be selling as rapidly as some optimists had expected,” Moritz reports.

Full article here.

Yes, speculation is always much more important than facts. Apple’s iPhone, in July, its first full month on sale, grabbed nearly 2% of the mobile handset market in the U.S. This is unprecedented. Apple today announced that it is on track to meet its goal of selling one million iPhones before the end of September. “Wearing off?” Puleeze. The “iPhone buzz” hasn’t even begun. As many know, Wall Street loves to play games. So does Apple: hardball, obviously. Apple’s competitors lost their lunches (and breakfasts and dinners and snacks) today. In our opinion, if you look up “buying opportunity” in an up-to-the-minute dictionary, you’ll be greeted with a shiny Apple Inc. logo. Look up “Motorola” or “Palm” or any number of others today and you’ll see the same photo of a fresh, steaming crater.

[UPDATE: 9/6, 12:22am EDT: Corrected “2% of the mobile handset market in the U.S.,” not just “2% of the so-called ‘smartphone’ market in the U.S.” Even more impressive, Apple! Thanks, Dan.]


  1. wow, i bought my iPhone on Aug 20…could have returned it Sept 3rd and bought the same exact model for $200 less. Not too thrilled about that.

    But I am still impressed with the iPod lineup now.

    MW: believe…as in I believe I have been taken to the cleaners.

  2. Well MDN, I for one think too that this is not such a smart move by Steve-o. It pisses of a lot of . It’s too much too soon. Why the haste in bringing.
    They will loose a lot of good will from possible partners e.g. mobile carriers in Europe who are still negotiating, not too mention AT&T;.

  3. all the people who want to buy into this report can as far as i am concerned….

    …i need the price to drop a bit more so i can make my 5th big stock buy at apple. ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  4. Gotta hand it to the media in finding a negative spin on anything and everything, even when there’s good news to be had.

    The world would be a much happier place without such pricks.

    The funny thing is if people buy the new iPod instead of the iPhone, who cares? It’s all $$$ to Apple!!

    Can’t wait for the quarterly results.

  5. “The move will add more evidence to the speculation that the iPhone, while causing quite a buzz, may not be selling as rapidly as some optimists had expected,” Moritz reports.

    I’d hardly call this “evidence” – as MDN notes, it’s speculation, not fact. Evidence would be, say, a memo from Apple lamenting poor iPhone sales. This is simply more fodder for the rumor mill.

  6. That should read “Why the haste in bringing a touch screen iPod?” I don’t understand it, it’s been on sale just 10 weeks! This kinda takes the shine of the iPhone. Also it will cut margins bigtime, hence the reaction on Wall Street.
    BTW did I mention I had a qeasy feeling already yesterday and sold all my Apple stock. Will buy back in soon after this drop!

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