This article summarizes the falling of shares, stating that the DOW fell 150 points yesterday.
I find this interesting, especially with the release of the new iPad on Wednesday.
“People are expecting a lot out of Apple, and they can’t disappoint,” said M. Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Okla. “They can’t afford to get a subdued reaction to their product.”
2 comments:
This article brings up the interesting point that consumer expectations for a product can have a broader effect on the economy. Apple has a history of always unveiling some exciting product. With the iPad getting a subdued reaction, stakeholders in the company felt like Apple was not going to perform as well. This lead to decrease in shares. Although this was coupled with other technology firms also losing shares, Apple's loss was a significant portion of the overall market downturn lead by the technology sector. Had Apple gotten a better response, this might have helped to pull the technology sector upwards.
I found an article stating that the Ipad will likely only sell about 5 million units (although they predicted they would sell 10 million units in 2010). However, the aggressive entry price (which some predicted to be $1000) is much more accommodating and will likely result in the Ipad being present in many more homes than analysts first thought was possible.
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