Did Apple Leak the iPhone 5 to Boost Falling Stock Prices?
Today’s announcement from Apple (NASDAQ:AAPL) regarding the planned release of the company’s iPhone 5 product in early September came as a shock to investors. The timing seemed perfect, almost suspiciously so, for a company that has seen share prices waver in recent weeks. In fact, Apple share prices have endured a gradual decline over the past six months, from highs of over $360 to current prices of $323 per share. Recently the company’s stock dropped below its 200 day moving average, perhaps another signal that the stock will continue to underperform in the coming weeks. Execs at Apple (what’s left of them at least) are also dropping like flies, and some seem bored (Ron Johnson?) with the company.
So was the company’s answer to rush its newest product out the doors in the hopes of pleasing the wall street crowd? If that is the case (let’s note this is pure speculation), then it could be a sign that Apple (NASDAQ:AAPL) high-ups have either lost confidence in the company’s ability to sustain its surging gains in share value over the last ten years (realistically it will have to happen eventually) or that they’re just flat out panicked over the sell-off from Apple shareholders (cause they’ve never seen anything like it). In either case, the iPhone 5 announcement has not been the boon it should’ve been, or could’ve been to Apple stock price. Even today, just following the company’s statement, shares are down .83%.
In the long run, Apple’s future seems secure. It has established dominance in two vital mobile device markets, smart phones and tablets (where it is unrivaled), not to mention its success in the PC sector. With the launch of iCloud services this fall the company is sure to continue to foster innovation and profitability for some time to come. The recent rough patch for Apple (NASDAQ:AAPL) stock may just be reality knocking at the door of a company that has been more popular than the prom-queen among investors and technology lovers since the early 2000s. Every company ultimately loses the halo-effect that comes with being young and popular, see Google (NASDAQ:GOOG), and is forced to adopt a more mature corporate image. That time may be here for Apple.