Why did Apple's stock go down after the new iPhone announcement?
Isn't that what everybody was waiting for?
Answers
1130 points
sundarkambam answered one year ago …
This was because:
1. The exclusive agreement with AT&T effectively caps the sales potential of the new iPhone.
2. Apple is still not good at selling to corporate customers , which is another negative.
3. It is widely expected that AT&T will subsidize the cost of the new iPhone, which in the long run will be detriment to Apple.
4. The new iPhone is expected to be superior to the iPod, which could affect the iPod sales.
No wonder, the stock is going down.
123 points
Engimuneer answered one year ago …
It took a quick dip right after the announcement, but has been up ever since. I took a nice bite into the APPL on the dip and will enjoy holding those stocks for a while. I also watched the entire iPhone release presentation (WWDC 08). Here is what I think they have going for them with the new release:
1) Original iPhone was $599 for an 8gb. New price is $199 & $299 (16gb, white or black). They found 56% of people that wanted an iPhone didn't because of price, myself included.
2) 3G network is 2.8X faster than the previous (EDGE?) and it's still WiFi compatible. Much longer battery life too. Don't forget the sick GPS features.
3) 3rd parties can develop their own applications that are sold/distributed through the Apple Store. Apple gets 30% of those proceeds. Over 400,000 copies of the development application have been distributed in the last few months.
4) More countries, 70 total. The rest of the world will no longer need to use unlocked/hacked versions and will get full functionality.
5) Enterprise support: 35% of Fortune 500 companies did beta testing on the iPhone 2.0 and the reaction was very positive.
This product will bring Apple into even more consumer's pockets and further all their other development lines. Sure, a few less iPods might get sold.... I'll shed a tear for those lonely iPods while enjoying my new iPhone at the _____.
