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Apple’s shares fell down 6% from $143.70 to $134.89. A drop of $8.81. This is nowhere near what analysts anticipated, as their expectations were a sale of 500,000 to 700,000 iPhones. With all the excitement near the launch no one could have argued that. However, AT&T reported a sale of only 146,000 iPhones. The company has a special deal to provide service to iPhones with Apple, which came out on the 29th. The excitement was only curtained by the release of the final Harry Potter book last week. Nevertheless, only Apple’s reporting of sales next Wednesday will reveal if this poses a serious problem to the company.
Some think, like Richard G. Lindner, AT&T’s chief financial officer, that the demand is still strong and the launch was great and will grow, but pesky little problems in activation, and the wait may have stopped some buyers. However, according to him, the iPhone has great potential and will turn into profits for both the companies.
However, AT&T did end up with a lot of new customers and is probably going to rise in shares soon, as 40% of the iPhone buyers were new to AT&T. This also might have been the negative for iPhone, since many people are not willing to get another plan or cancel their existing one.
Read [NYTimes]
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