Apple shares fall on iPhone numbers
Posted: Wed Jul 25, 2007 12:31 amI like it how all you english professors and apple people like to point to the fact that its all anti-mac but we never started the arguement to say that the Windows platform was superior. We jusy react to youa and the commercials you run claiaming that mac is better. Apple has as many problems as Windows and is vunerable to saem virus as Windows. People on here are just too afraid to dissagree with the mac people. I think maybe the owner in here is a mac lover and keeps out all the peole who disagree. All these komissars must be macomissars to not allow any points agreeing with me. I don;t need their support since every day new articles come out putting down the macs and the iphoney. My Nokia is far superior and only cost me $300. I guees some people need big toys to compensate for lacking in other places.
SAN JOSE, Calif. - AT&T Inc. wiped some of the glow off Apple Inc.'s iPhone on Tuesday, releasing numbers that showed fewer people than expected signed up for service in the first two days of the multimedia cell phone's release.
AT&T___the iPhone's exclusive carrier — said it activated 146,000 iPhones on June 29 and 30, a number that disappointed investors following some analyst forecasts that Apple would sell 500,000 or more iPhones in its first weekend.
The news interrupted a steady rise in Apple's stock price that started with the iPhone's release. The 18 percent surge generated $18 billion in shareholder wealth.
On Tuesday, Apple shares fell $8.81, or more than 6 percent, to $134.89, wiping out more than $7 billion of Apple's market value.
Analysts cautioned against reading too much into AT&T's activation numbers, saying the actual number of iPhones sold may be much higher but was not reflected in the figure because many users had activation problems and couldn't sign up for a few days.
"It's just had such a run on overexpectations, I don't see this as any sort of disappointing metric in terms of the iPhone overall," said Ingrid Ebeling, an analyst with JMP Securities. "I think it's just gotten a little overhyped over the past month."
Also weighing on Apple's stock Tuesday was a report from CIBC World Markets that said demand for the iPhone has experienced a "significant decline" in the past 10 days, a slowdown driven in part by dissatisfaction with the slow data transfer speeds on AT&T's network. CIBC used store visits and a survey of iPhone buyers to reach its conclusions.
CIBC said it expects Apple and AT&T to boost their marketing push for the iPhone and the companies could introduce a new model in November — earlier than expected — that operates on a faster network. The two models now available cost $499 and $599.
Apple spokeswoman Jennifer Bowcock did not immediately return a call for comment Tuesday.
Apple is expected to release more information on the iPhone's sales in its third-quarter earnings report on Wednesday. The company has been tightlipped about its near-term sales forecasts, saying only that it hopes to sell 10 million worldwide by 2008.
Shaw Wu, an analyst with American Technology Research, said the little information Apple is likely to release will be closely watched by investors looking for signs of the iPhone's momentum.
"Even though it's only two days of information, it's definitely going to be looked at carefully," Wu said.
Analysts are expecting Apple to continue its strong profit growth. According to a survey by Thomson Financial, Apple is expected to earn 72 cents a share on $5.29 billion in revenue for the third quarter.
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Off the Wires
Apple shares fall on iPhone numbers AP, Wed Jul 25, 1:35 AM ET AT&T profit rises on wireless, iPhone disappoints Reuters, Tue Jul 24, 1:53 PM ET Feature Articles
A method to the iPhone madness? at CNET, Jun 29 Read Jobs' remarks at CNN/Money, Feb 06 News Stories
UK Launch of Apple iPhone Set for September? PC World via Yahoo! News, Jul 17 iPhone buyers have no regrets USATODAY.com via Yahoo! News, Jul 13 Opinion & Editorials
A lock on the market at The Los Angeles Times (reg. req'd), Feb 08 Apple's Steve Jobs: A man with plenty of options at Boston Globe, Jan 11 Technology News
Apple shares fall on iPhone numbers AP MySpace finds 29,000 sex offenders AP NJ town planning beach of the future AP FDA: No need to flag all nanotechnology AP Lawsuit seeks to shut down Facebook AP Most Viewed - Technology
MySpace finds 29,000 sex offenders AP NJ town planning beach of the future AP Apple shares fall on iPhone numbers AP MySpace deletes 29,000 sex offenders Reuters Lawsuit seeks to shut down Facebook AP Technology Video
They Hack iPhone ABC News - Tue Jul 24, 5:03 PM ET Soldier gets grip with bionic hand AP - Tue Jul 24, 8:50 AM ET Online Social Worlds Collide ABC News - Mon Jul 23, 8:05 PM ET Taking Out the Trash in Outer Space ABC News - Mon Jul 23, 3:35 PM ET
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SAN JOSE, Calif. - AT&T Inc. wiped some of the glow off Apple Inc.'s iPhone on Tuesday, releasing numbers that showed fewer people than expected signed up for service in the first two days of the multimedia cell phone's release.
AT&T___the iPhone's exclusive carrier — said it activated 146,000 iPhones on June 29 and 30, a number that disappointed investors following some analyst forecasts that Apple would sell 500,000 or more iPhones in its first weekend.
The news interrupted a steady rise in Apple's stock price that started with the iPhone's release. The 18 percent surge generated $18 billion in shareholder wealth.
On Tuesday, Apple shares fell $8.81, or more than 6 percent, to $134.89, wiping out more than $7 billion of Apple's market value.
Analysts cautioned against reading too much into AT&T's activation numbers, saying the actual number of iPhones sold may be much higher but was not reflected in the figure because many users had activation problems and couldn't sign up for a few days.
"It's just had such a run on overexpectations, I don't see this as any sort of disappointing metric in terms of the iPhone overall," said Ingrid Ebeling, an analyst with JMP Securities. "I think it's just gotten a little overhyped over the past month."
Also weighing on Apple's stock Tuesday was a report from CIBC World Markets that said demand for the iPhone has experienced a "significant decline" in the past 10 days, a slowdown driven in part by dissatisfaction with the slow data transfer speeds on AT&T's network. CIBC used store visits and a survey of iPhone buyers to reach its conclusions.
CIBC said it expects Apple and AT&T to boost their marketing push for the iPhone and the companies could introduce a new model in November — earlier than expected — that operates on a faster network. The two models now available cost $499 and $599.
Apple spokeswoman Jennifer Bowcock did not immediately return a call for comment Tuesday.
Apple is expected to release more information on the iPhone's sales in its third-quarter earnings report on Wednesday. The company has been tightlipped about its near-term sales forecasts, saying only that it hopes to sell 10 million worldwide by 2008.
Shaw Wu, an analyst with American Technology Research, said the little information Apple is likely to release will be closely watched by investors looking for signs of the iPhone's momentum.
"Even though it's only two days of information, it's definitely going to be looked at carefully," Wu said.
Analysts are expecting Apple to continue its strong profit growth. According to a survey by Thomson Financial, Apple is expected to earn 72 cents a share on $5.29 billion in revenue for the third quarter.
Email Story IM Story Printable View RECOMMEND THIS STORY
Recommend It:
Average (45 votes)
» Recommended Stories
Full Coverage: Apple Inc.
Off the Wires
Apple shares fall on iPhone numbers AP, Wed Jul 25, 1:35 AM ET AT&T profit rises on wireless, iPhone disappoints Reuters, Tue Jul 24, 1:53 PM ET Feature Articles
A method to the iPhone madness? at CNET, Jun 29 Read Jobs' remarks at CNN/Money, Feb 06 News Stories
UK Launch of Apple iPhone Set for September? PC World via Yahoo! News, Jul 17 iPhone buyers have no regrets USATODAY.com via Yahoo! News, Jul 13 Opinion & Editorials
A lock on the market at The Los Angeles Times (reg. req'd), Feb 08 Apple's Steve Jobs: A man with plenty of options at Boston Globe, Jan 11 Technology News
Apple shares fall on iPhone numbers AP MySpace finds 29,000 sex offenders AP NJ town planning beach of the future AP FDA: No need to flag all nanotechnology AP Lawsuit seeks to shut down Facebook AP Most Viewed - Technology
MySpace finds 29,000 sex offenders AP NJ town planning beach of the future AP Apple shares fall on iPhone numbers AP MySpace deletes 29,000 sex offenders Reuters Lawsuit seeks to shut down Facebook AP Technology Video
They Hack iPhone ABC News - Tue Jul 24, 5:03 PM ET Soldier gets grip with bionic hand AP - Tue Jul 24, 8:50 AM ET Online Social Worlds Collide ABC News - Mon Jul 23, 8:05 PM ET Taking Out the Trash in Outer Space ABC News - Mon Jul 23, 3:35 PM ET
Sponsored Links( What's this? )
HP Official Store
Shop powerful notebooks, desktops & more at the Official HP Store now.
www.hpshopping.com Award-Winning Panasonic Toughbook Laptop
Durable. Reliable. Wireless. Toughbook Laptop computers withstand drops, bangs and spills, for extreme mobility. A full product line with embedded WLAN and optional embedded WWAN.
www.panasonic.com Geek Squad Official Site
Upgrades, installs & maintenance. Visit GeekSquad.com today.
www.geeksquad.com
AP Photo: Apple customers Jason Payne, right, and Loan Thach, left, try out the new Apple iPhone... Slideshow: Apple Inc.
Technology Video
They Hack iPhone
ABC News
Soldier gets grip with bionic hand
AP
» All news video
RELATED QUOTES
AAPL 136.65 +1.76
ATT 24.10 -0.05
^DJUSS 542.01 +3.06
Delayed Data
Providers - Disclaimer Elsewhere on the Web
CNN.com: Earth observation satellites in peril
ABC News: Wall Street Starts to Lean Democratic
CNN.com: Dogged determination leads to RoboCup victory
ADVERTISEMENT
ON YAHOO! TECH
Hook me up
Yahoo! Tech helps a Longhorn fan catch big games with a Slingbox.
YAHOO! NEWS WANTS YOU!
Yahoo! News is looking for software engineers who are passionate about online news. Help us take the No. 1 news destination on the Internet to greater heights.
» Learn moreAdd headlines to your personalized My Yahoo! page
(About My Yahoo! and RSS)
Technology News
Add to My Yahoo! Add to RSSPersonal Technology News
Add to My Yahoo! Add to RSSWireless and Mobile Technology
Add to My Yahoo! Add to RSS» More news feeds
NEWS ALERTS
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