Comments on: Strangely Enough, Apple Fizzles With iPhone Release (the Stock, Anyway)

By: Jim Courtney

Jim Courtney — Tue, 03 Jul 2007 02:21:36 +0000

Maria, rslux and Louis hit the nail on the head. The only change in APPL would have occurred if there had been no lineups and reports of less than six figure initial weekend sales. Markets run on expectations (usually of stock analysts) and are not necessarily timed to actual events. Watch for APPL’s next quarterly report when they should be reporting on unit sales and associated data as well as impact of iPhone on iPod sales momentum.

Last week, RIM’s Q1 report exceeded market expectations on revenues and units significantly and look what happened to their stock — up 18% last week on earnings announcement — and up another 7% today — because, now that iPhone is out, analysts don’t see it as a threat to Blackberry. From a Street.com report “RIM Run-up Rebuffs iPhone Debut”:

“Investors are getting more confident that RIM has the business acumen to compete with the consumer-electronics giants,” says Tony Carbone, an analyst with mutual fund manager RCM Capital, which holds RIM shares in its mutual funds and separately managed accounts.

[I do own a small quantity of RIMM bought about nine years ago.]

By: Maria

Maria — Tue, 03 Jul 2007 01:59:10 +0000

I agree with rslux and Louis G: I think the market believes that Apple stock is already appropriately priced given the release of the iPhone. As someone who bought her initial 50 shares at $13.50/share at least one stock split ago, I’m pretty satisfied with the current price.

By: jhay

jhay — Mon, 02 Jul 2007 22:23:45 +0000

Either way, Apple has just dropped another bombshell and is poised to reap more from it in the following weeks and months.

I just wonder how the other phone manufacturers would react to this. First it was Safari on Windows now the iPhone, Apple is really starting to ignite fire in big markets.

Where’s Micro$oft? ;)

By: Tony Hung

Tony Hung — Mon, 02 Jul 2007 18:30:46 +0000

The built in expectations was something I considered after I wrote the post — good observations folks ;)

By: Louis Gray

Louis Gray — Mon, 02 Jul 2007 17:59:55 +0000

I’d argue that Apple stock had already appreciated in advance of the iPhone’s debut. It has had quite a run to all-time highs, and the fact the iPhone debuted wasn’t a surprise to anyone.

(I don’t own Apple stock right now, unfortunately)

By: rslux

rslux — Mon, 02 Jul 2007 17:54:09 +0000

My (admittedly limited) understanding is that expectations for the iPhone have already been built into AAPL’s share price via the stock run-up since January, hence no big surge the day after the iPhone was released.

By: University Update - Steve Jobs - Strangely Enough, Apple Fizzles With iPhone Release (the Stock, Anyway)

Mon, 02 Jul 2007 16:58:13 +0000

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