Barron's: Apple stock slide linked to iPhone rumors
updated 10:10 am EDT, Fri May 23, 2008
Barron's on AAPL slide
A recent slip in Apple's stock value over the course of a day -- to as low as $175.41 on Thursday -- was attributable to iPhone rumors, writes Barron's. The financial publication notes that even though Apple has not technically announced the 3G iPhone, "rumors of a rumor" began circulating on Thursday that the product would be delayed, causing mild investor panic. As of press time, Apple stock has since recovered some of its value. Apple is expected to reveal the existence of the 3G iPhone on June 9th, the beginning of the company's WWDC conference in San Francisco.
Barron's also writes that the CFO of AT&T, Rick Lindner, is saying that the carrier yet to decide its pricing for the next iPhone, even though accounts have circulated that it is dropping revenue sharing and going with a subsidized scheme. Although Apple would lose out on a continual source of income, AT&T would have to drop its price by as much as $200, and thereby increase sales of the actual handsets.
"There’s not been a product announcement. There hasn’t been any pricing decisions made. That’s yet to come," says Lindner.
Fresh-Faced Recruit
Joined: Jun 2007
Say it ain't so.
So they want to make the iPhone just like every other friggin phone on the market. Cheap phone locking you into a contract.
The phone doesn't need a cheaper price. They were able to sell as many as they could make at FULL price still with a contract. Why the need for a subsidy? AT&T fears change.