“The Apple rumor mill has shifted into high gear. Historically, this is a normal pattern prior to Apple’s new-product launches,” Nigam Arora writes for MarketWatch. “The rumors range from the names to the colors of the new iPhones.”
“The big buzz Monday was that Apple will introduce a gold-colored phone. For the gadget lovers, the rumors are an endless source of entertainment,” Arora writes. “For the astute investors, the rumors leading to Apple product launches have historically provided significant opportunities to generate profits. Here is how to generate profits from iPhone rumors.”
Arora writes, “The Apple rumor mill sets the expectations. Expectations are quickly discounted in the stock price. When new rumors are better than the previous expectations, the stock price rises. On the other hand, when the new rumors paint a less-rosy picture, the stock price falls. The consensus of the rumor mill prior to the release of iPhone 4S was that it would be the phone with incremental hardware improvements but no major new features. The reality turned out to be quite different. ”
Much more in the full article here.