updated 04:00 pm EDT, Tue June 23, 2009
Brief Apple stock decline?
An option investor is anticipating a brief but substantial fall in Apple's stock price, according to Forbes. With the price having already slid in recent days, the investor predicts that within the next three weeks value should slip further, from approximately $134 to as low as $110. No direct reason is cited, but investors may be leery about Apple's prospects in light of reports claiming that CEO Steve Jobs underwent a liver transplant. Much of Apple's direction is said to come from Jobs, including product design.
RBC Capital analyst Mike Abramsky has issued an optimistic interpretation of Apple's prospects however, based on revisions to the iPhone line. The 1 million 3G S units sold over the weekend is impressive, Abramsky comments, but the new phone is said to be less important than the 3G, now cheaper at $99. It could increase momentum by 30 to 40 percent in many Asian and European countries, where phone subsidies are already higher, and many people opt for prepaid devices regardless.
Some 20 million iPhones may be sold in FY09, of which 64.5 percent are forecast to be 3Gs. The 3G S is not expected to control iPhone sales until FY10, when total iPhone sales of 30 million are predicted, approximately 60 percent of which could be taken up by the 3G S. The memo does not make mention of the 3G S' likely successor.