Apple Stocks Fall After iPhone Price Cut

[Edward Kirk]

<img src="http://www.iphonealley.com/images/storyimages/june07/upward_graph.jpg" align="right"/>

MarketWatch reports that Apple stock took a hit this morning after the yesterday's keynote, where they slashed the price of the iPhone and unveiled the revamped iPod lineup, falling 2.7% to $133. Global Equity Research downgraded Apple to equal weight due to concerns over iPhone sales and the quality of service offered by AT&T.<!--break-->

<blockquote>"Apple's iPhone is suffering from significant strategic and tactical missteps and Apple is probably unlikely to achieve the stated 10 million unit goal by the end of 2008," wrote analyst Trip Chowdry. "Consumers are questioning the value of Apple's iPhone."</blockquote>

In yesterday's keynote, Steve Jobs announced a $200 price reduction in the iPhone, saying that they want to make the iPhone "affordable for even more customers as we enter this holiday season." As a result, there has been an <a href="http://www.iphonealley.com/news/rumor-apple-to-open-refund-policy-tomorrow" target="_blank">uproar of complaints</a> from the Apple faithful who purchased the iPhones at or soon after launch day and had to pay a price that was 33% higher.

Shareholders apparently had mixed feelings about the announcements made, and the wave reached across the technology industry to impact several major companies, Among which were Intel Corp., Cisco Systems Inc., and Oracle Corp, as well as Amazon.com, eBay Inc., and Yahoo Inc. in the Internet sector.

[via <a href="http://www.marketwatch.com/news/story/tech-stocks-waver-apple-falls/story.aspx?guid=%7B9600B117-1743-4269-9520-E5078D549A1F%7D" target="_blank">MarketWatch</a>]

[Hans]

well thats what steve jobs gets, too bad it doesnt get me my 200 back. that bastard is just trying to saturate the market before nokia and sony come out with their versions of the iphone

[Pepper]

he'd probably save money by giving everyone a small refund. But what do I know, i'm just a valued customer :D

[Unregistered]

Seems like an Apple a day isn't the best medicine. No more Apple products for me!!!!!!!

[Pepper]

Seems like an Apple a day isn't the best medicine. No more Apple products for me!!!!!!!

I wouldn't go that far, but i will be waiting at least 6 months before I buy new apple products.

[Unregistered]

I stood in line and got four (that's right 4) new shiny iPhones on the day they were released 29-June-2007. Great! Love them. Few products were or have been as hyped by the media as the iPhone was and none of them EXCEPT the iPhone has ever come near living up to that hype. The iPhone was the notable exception.

Yes. I paid the full bore retail price then that was $200 more than I could buy the phone for today and for two months I had the benefit of having the latest and coolest gaget around! Friends envied it. Strangers would stop and ask to touch it. Everyone (including me) was curious if it was as great as it was touted to be.

The answer was and is an unequivocable YES! HELL YES! It's a new chapter in portable entertainment and communication. I've been paying Cingular or Verizon a couple hundred dollars per month for our families cell phones for years. Finally I feel like I'm getting my monies worth! The email is instant. The voice mail superb. The ability to surf the net in my hand? Who would have thought it was possible, much less doable on a 3" screen - but with Apple it is!

Regarding AT&T as the service provider of choice - well there is always a problem somewhere -- and AT&T is the problem. Poorly trained reps. Mediocre quality service. Ignorant staff on the phones - the list goes on. Suffice it to say that while their upper managment may have been mentored by those who were the "Telephone Company" AT&T was broken up by the Federal Courts nearly 35 years ago and they are NOT the telepone company any longer. The same spiteful arrogance that forced the federal courts to shut down an evil and greedy monolopistic system is going to force Apple to pull out of this agreement - or buy them out and take the iPhone customers with them to a revamped carrier that provides service via any GSM based carrier and yet maintains the standards of service that we need and want with iPhone.

Love the phone and loathe AT&T because of their unhelpful and monopolistic attitudes.

In spite of AT&T's myriad of problems, the iPhone is so good that it almost (not quite, but almost) compensates for AT&T's lack of service and total lack of underatanding.

Apple products are quality - pure and simple. The Mac's I bought five years ago are still useful and productive machines. The packaging for an iPod or an iPhone almost makes the overall purcahse experience a better one! And the products just flat out WORK and WORK WELL. Even AT&T is hard pressed to completely ruini the iPhone experience for us. But hopefully Apple will get AT&T up to speed or drop them as a carrier. I don't care which they do, but hope they do it soon!

[Unregistered]

You can get $100 back if you bought a iPhone.

http://www.apple.com/hotnews/openiphoneletter/

[Unregistered]

I want Apple to know that I am FURIOUS about the price drop. Just bought mine 3 weeks ago so I'm screwed in returning it so I can repurchase at cheaper price. I want to know how I can get my $200 back -- anyone know here?

[Jim R]

Whaaaa! Grow up people!

Companies change their prices all the time. What do you expect—Apple to tell you not to buy because they may lower the price. To me, the iPhone is still worth $599 and don't regret paying it. The $399 price makes it even better.

[Pepper]

You can get $100 back if you bought a iPhone.

http://www.apple.com/hotnews/openiphoneletter/

Thats good enough for me. At least he is listening to the users. I forgive you steve.

[Unregistered]

No, you get a grip. Tech companies don't do it though that quickly -- I could understand in one year but jeez -- in less than 3 months? I want Apple to know I will not buy another ipod gadget (and I own 5 in my house) until I get my $200 refund NOW

[Unregistered]

and I hope their stock continues to tumble unless they agree to refund $200 to ALL that paid the full price for the iPhone!

[Unregistered]

Whaaaa! Grow up people!

Companies change their prices all the time. What do you expect—Apple to tell you not to buy because they may lower the price. To me, the iPhone is still worth $599 and don't regret paying it. The $399 price makes it even better.

But it has been not even 2 whole months since it came out. If I would have known that, or even contemplated it might happen, I could have waited 2 months before I got my phone. Plus it basically means that the iPhone was never worth $600 dollars if they can lower it this soon.

[Pepper]

Plus it basically means that the iPhone was never worth $600 dollars if they can lower it this soon.

i'm pretty sure most people knew it only takes them like $100 to make the iPhone.

[MikeinAZ]

Avid apple user, will now wait several months before any new purchase of apple product, wait for the discount like every other computer company. Lost my loyalty because of price drop. 100.00 apple credit...so I recover 25.00 cost for a 200.00 price drop. Bad enough I now have to use AT@T double slap in the face with price drop.
Exclusive was worth paying for. Another carrier must have apple worried. Lost me as phone customer. Going back to previous service.

[Unregistered]

I agree!!! I only have 200 shares of stock. I am selling!! This shows signs of corporate weakness.