1 year, 10 months ago
via iphoneqna.com
How will the iPhone 4 antenna issue affect Apple's stock price?
With all of the press, outrage, and hype behind the iPhone 4 antenna issue with Apple, will this negatively affect their stock? Clearly this is a huge public relations hit as users have continued to complain about the issues with the antenna and reception.
It seems Apple has found its new solution. Give out free iPhone bumper cases to all iPhone 4 customers. But according to Mashable this move from Apple will cost Steve Jobs and company a hefty $175 million dollars. What ramifications will this have on the current and future price of Apple stock? Will this impact their quarterly earnings? Will this hurt present and future sales of the iPhone?
It seems Apple has found its new solution. Give out free iPhone bumper cases to all iPhone 4 customers. But according to Mashable this move from Apple will cost Steve Jobs and company a hefty $175 million dollars. What ramifications will this have on the current and future price of Apple stock? Will this impact their quarterly earnings? Will this hurt present and future sales of the iPhone?
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M$2 Answers
Apple stock have shed almost eight percent as of July 14, 2010, after the press conference held by Steve Jobs, to address the concerns about the reception issue and the erroneous computation of the signals bar. Furthermore, it remains to be seen if the company will address the hardware issue that is hounding the iPhone 4, instead of giving a free bumper case to affected customers. Another mistake made by Jobs, was when he dragged other mobile companies such as RIM and Samsung, in relation to the antenna issue.
"Nonetheless, these analysts must be publicly predicting that Apple’s iPhone 4 sales will be fine must be doing so for a reason. With all of the justifiable hullabaloo surrounding the antenna issue, it’s easy to forget that this device does anything other than losing some or all of its connection if you hold it in a certain way."
In the long term, I think this issue will affect the overall outlook of Apple by consumers, as an innovative technology company.
"Nonetheless, these analysts must be publicly predicting that Apple’s iPhone 4 sales will be fine must be doing so for a reason. With all of the justifiable hullabaloo surrounding the antenna issue, it’s easy to forget that this device does anything other than losing some or all of its connection if you hold it in a certain way."
In the long term, I think this issue will affect the overall outlook of Apple by consumers, as an innovative technology company.
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My take on the iPhone4 antenna issue is that in a few months, it will be a complete non-issue for the company. Short term, it has clearly impacted Apple stock, but Apple is responding to the issue and I suspect we won’t be hearing much about this down the road. As long as they can avoid any major hardware/software issues with the next few product releases, I think Apple’s reputation as an innovator and maker of high-quality, easy-to-use products will continue.
The iPhone continues to be a significant revenue stream for Apple, but I am also thinking that the iPhone in general will have less and less impact on Apple’s stock. Apple’s stock is going to be driven primarily by their ability to find growth in new products (like the iPad) or significant expansion in existing products (like AppleTV or iPad).
While iPhone 4 has gotten a lot of attention lately, one of the amazing things about Apple’s results released this week was that they sold more computers than ever. Many people were worried that the iPad might cannibalize sales of PCs or laptops, but at least initially, that does not appear to be the case. Apple has done a fantastic job creating an ecosystem around their products and making them integrate so smoothly that each new product is creating a halo effect and actually increasing sales of other products. If they can continue this trend, I think we will wish we had used the stock price drop from the iPhone 4 antenna issues as a chance to buy the stock.
The iPhone continues to be a significant revenue stream for Apple, but I am also thinking that the iPhone in general will have less and less impact on Apple’s stock. Apple’s stock is going to be driven primarily by their ability to find growth in new products (like the iPad) or significant expansion in existing products (like AppleTV or iPad).
While iPhone 4 has gotten a lot of attention lately, one of the amazing things about Apple’s results released this week was that they sold more computers than ever. Many people were worried that the iPad might cannibalize sales of PCs or laptops, but at least initially, that does not appear to be the case. Apple has done a fantastic job creating an ecosystem around their products and making them integrate so smoothly that each new product is creating a halo effect and actually increasing sales of other products. If they can continue this trend, I think we will wish we had used the stock price drop from the iPhone 4 antenna issues as a chance to buy the stock.
images:
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