Skip to main content

Apple stock suffers worst product launch week of the iPhone era 

Shares shed 5% on week



Apple Inc. shares fell Friday, as the consumer electronics giant launched its new line of smartphones and watches, and turned in their worst weekly performance the week of a major product launch since the original iPhone was released back in 2007, following less-than-stellar product reviews.
Apple shares AAPL, +0.44% fell 1% to close at $151.89 on Friday, as the iPhone 8 and iPhone 8 Plus, Apple Watch Series 3, and Apple TV 4K became available to the general public.
Don’t miss: Apple’s divergence from Nasdaq could spell trouble for tech stocks’ rally
For the week, shares fell 5%, their worst performing week prior to an iPhone or Apple Watch launch, according to FactSet data. Previously, the stock’s worst week of a product launch in the iPhone era was in June 2010, the iPhone 4 and iPhone 3GS launched.
Shares are down 6% from their close before Apple’s Sept. 12 event announcing its new offerings, and are down 7.4% for the month of September, on track for their worst monthly performance since April 2016. In comparison, the Dow Jones Industrial Average DJIA, +0.37%  has gained 1.8% this month.
Some analysts, however, see the pullback in Apple shares as a case of “short-term pain for long-term gain” seeing the iPhone X was excluded from this week’s release.

–– ADVERTISEMENT ––
The $1,000 iPhone X that is supposed to be Apple’s most advanced smartphone yet and is the focus for many Apple investors and customers. iPhone X preorders are scheduled to begin Oct. 27, with an official launch on Nov. 3.
Apple shares also logged their worst performance from an iPhone announcement to its release, according to Dow Jones data. Since the close of markets just after the iPhone 8 and iPhone 8 Plus were announced to Friday, Apple shares declined 5.6%. The previous worst performance was back when the iPhone 5s and 5c were released in September 2013 and shares had declined 5.5% from when the phones were announced.
Apple stock from product announcement to release, according to DJ data
iPhone Model Announced Available Performance
iPhone 1/9/2007 6/29/2007 31.8%
iPhone 3G 6/9/2008 7/11/2008 -5.0%
iPhone 3GS 6/8/2009 6/19/2009 -3.0%
iPhone 4 6/7/2010 6/24/2010 7.2%
iPhone 4S 10/4/2011 10/14/2011 13.3%
iPhone 5 9/12/2012 9/21/2012 4.5%
iPhone 5s & 5c 9/10/2013 9/20/2013 -5.5%
iPhone 6 & 6 Plus 9/9/2014 9/19/2014 3.0%
iPhone 6s & 6s Plus 9/9/2015 9/25/2015 4.1%
iPhone 7 & 7 Plus 9/7/2016 9/16/2016 6.1%
iPhone 8 & 8 Plus 9/12/2017 9/22/2017 -5.6%
TimeApple Inc.Nov 16Jan 17Mar 17May 17Jul 17Sep 17
US:AAPL
$100$120$140$160$180
On Tuesday, shares barely managed a gain after ho-hum iPhone 8 reviews. On Wednesday, shares dropped 1.7% after a few prominent Apple Watch Series 3 reviews complained about spotty connectivity, an issue Apple acknowledged it was seeking to solve.
Thursday’s 1.7% decline followed an announcement that Alphabet Inc.’s GOOG, +0.47% GOOGL, +0.48% Google is spending $1.1 billion on a cooperation agreement with smartphone manufacturer HTC Corp. 2498, -2.42% to produce the Pixel smartphone and mixed reviews on the Apple TV 4K.

 


Comments

Post a Comment

Popular posts from this blog

U.S. Private Sector Job Growth Slows In September RTTNews.com) - Employment in the U.S. private sector climbed by slightly more than anticipated in the month of September, according to a report released by payroll processor ADP on Wednesday. ADP said private sector employment rose by 135,000 jobs in September after surging up by a revised 228,000 jobs in August. Economists had expected employment to climb by 125,000 jobs compared to the 237,000 job jump originally reported for the previous month. "Hurricanes Harvey and Irma hurt the job market in September," said Mark Zandi, chief economist of Moody's Analytics. "Looking through the storms the job market remains sturdy and strong." The report said employment in the service-providing sector climbed by 88,000 jobs during the month, while employment in the goods-producing sector rose by 48,000 jobs. Employment at large and medium businesses increased by 79,000 job...
2 comments
Read more
Summary Revenue estimates call for 16.2% growth. Unit sales not likely the key driver. Apple in line with many "growth" companies. This year's iPhone refresh from Apple ( AAPL ) is one that is expected to help the company's revenues surge to a new all-time high in fiscal 2018. While that may not be surprising to many, a lot of investors probably don't realize how this growth is likely to be achieved. Additionally, while the company's top line is expected to accelerate quite a bit, how many people realize that Apple may rival many key growth firms over the next year? While the Street is expecting Apple to set a new all-time iPhone sales record for its September 2018 ending fiscal year at around 245 million units , that growth is in the low teens percentage wise and not a substantial surge from the previous record of 231 million seen in fiscal 2015. As an analyst from Guggenheim points out, a large chunk of the company's overall rev...
2 comments
Read more
Axis Capital Holdings Limited (AXS) Ex-Dividend Date Scheduled for October 05, 2017   Axis Capital Holdings Limited ( AXS ) will begin trading ex-dividend on October 05, 2017. A cash dividend payment of $0.38 per share is scheduled to be paid on October 16, 2017. Shareholders who purchased AXS prior to the ex-dividend date are eligible for the cash dividend payment. This marks the 4th quarter that AXS has paid the same dividend. At the current stock price of $57.21, the dividend yield is 2.66%. The previous trading day's last sale of AXS was $57.21, representing a -19.49% decrease from the 52 week high of $71.06 and a 9.7% increase over the 52 week low of $52.15. AXS is a part of the Finance sector, which includes companies such as D/B/A Chubb Limited New ( CB ) and American International Group, Inc. ( AIG ). AXS's current earnings per share, an indicator of a company's profitability, is $4.51. Zacks Investment Research reports AXS's forecasted ea...
2 comments
Read more