Apple shares down 7% on iPhone cutback rumor

Let's face it, iPhone really is about $200-300 overpriced.. It really needs to be subsidized, given that it's so tightly bound to ATT.

It will never be subsidized due to Apple's margins demand, nor will it come down $200-300 in price. But it should & could come down $100-150. Also, the introduction of a cheaper "nano" version would open the overall market.

However, as an iPhone owner, I have no doubt it is worth every penny. There is the rub... if you own one, you don't know why someone wouldn't buy one.

It is subsidized. AT&T already is paying apple some $200 for each iphone sold. Oh, you meant subsidizing it for users, not apple? Well, maybe without that, it would cost some $800?

Subsidies don't make sense, when you make a very similar device that has most of the features, but isn't a phone.

In other words, Apple can't charge $300 for the iPhone, and then charge $400 for the upcoming iPod, which will have a whole lot in common with it.

If Apple knew they were going to cut production and said nothing in or before their July 25 report, that would be criminal. 7% is a lot of money gone. There's a good chance this will spook investors and it will fall much further. The market's opinion of Apple counts. They had better explain this fast, if there have been any "unforseen circumstances" at all. Otherwise there is likely to be more bad news as the market reacts to this "bait and switch".

...may be a factor in slowing sales & while I'm sure this is part of the strategy to procure revenue streams it sure isn't helping sales - I'd buy an unlocked gsm version tomorrow if I could a la carte the services here in Canada...

I certainly love the 'experts' in the investment market -- all speculating based on rumor and ignorance.

a) There won't be a 'nano' iPhone. Get it in your skull. b) The moment the 2G version of the iPhone becomes available (i.e. the EuroVersion), 1G versions will become available on the Apple refurb store at $100 less than retail. At $399, and $499, the phone will appeal more. Once the stock depletes more, you should be able to see 1G versions at $299, and $399 through Apple's refurb store. c) The 2G phone will be sold for the same prices as today's phone, just may included upgraded hardware (i.e. 3G radio, better camera, etc...). It will also include new and updated firmware and applications - but those will be available to 1G phone users as well, via a software update.

The European market, and later, the Asian market will explode the market for the iPhone, as those phone will add more features, which will trickle up to the US market, and will result in cheaper phones being made available via the refurb store.

Haven't you folks figured out how this works, yet?

Up on rumors, down on rumors...

"Well short of analyst expectations" does not belie very solid...indeed, extraordinary numbers for a product launch like this. Looking at things realistically, the iPhone is a major success (and yes, I now have one and wonder where it's been all my life.)

But all this hype and rumor, leading to swings of euphoria and panic, are making some short traders very happy.

This is an "engineered" rumor, plain and simple, which was architected to drive down the cost of AAPL for a purchase opportunity. The SEC needs to crack down on this kind of rigged selloff by the major investment houses, as it hurts small investors.

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Some investors might have just been looking for a reason to cash out after the stock had been so high.