IPhone Disappoints | Apple’s Stock Price Falls

37 sec read

apple-iphone.jpgAT&T, the sole U.S. service provider for Apple’s first phone, said it activated 146,000 iPhone subscribers in the first two days after launch on June 29. Apparently, this was well below analysts expectations for the device, resulting in over a 6% drop for Apple’ stock price in one day.

The much hyped iPhone is supposed to revolutionize the cellular market, providing easy access to online video through YouTube and the iTunes video store. I am surprised that the iPhone did not meet analysts expectations in light of the intense marketing campaign and non-stop press coverage.

By all accounts, iPhones were selling out throughout the U.S. on the weekend of its release. I wonder how many of those sales were by people looking to make a quick buck on Ebay, similar to the release of the Sony Playstation 3. A quick look on Ebay shows iPhones being sold for over $1,000. Ouch!

One interesting side note to the Apple story is that the stock price for AT&T, Apple’s partner with the iPhone, was up for the day.