Daring Fireball points out that following most new Apple product introductions, the stock price tends to fall:

Here are the Steve Jobs product announcement stock action:

• 23 October 2001, introduction of original iPod: AAPL fell about 5 percent.
• 7 January 2002, Macworld Expo keynote: AAPL fell 4 percent.
• 7 January 2003, Macworld Expo keynote: AAPL fell slightly.
• 6 January 2004, Macworld Expo keynote, introduction of iPod Mini: AAPL fell slightly.
• 11 January 2005, Macworld Expo keynote: AAPL fell over 6 percent.
• 10 January 2006, Macworld Expo keynote: AAPL rose over 6 percent.
• 9 January 2007, Macworld Expo keynote, introduction of the iPhone, now seen as the biggest and most important product introduction in Apple, and perhaps industry, history: AAPL rose over 8 percent.
• 15 January 2008, Macworld Expo keynote, introduction of MacBook Air: AAPL fell over 5 percent.
• 9 June 2008, WWDC keynote, introduction of iPhone 3G: AAPL fell 2 percent
• 27 January 2010, introduction of original iPad: AAPL was up slightly on the day, but then dropped and kept dropping for days.
• 7 June 2010, introduction of iPhone 4 (last phone introduced by Jobs): AAPL fell slightly, then dropped 3 percent the next day.

Note that the 10 percent drop in Apple’s share price following the 5S/5C introduction would have been extreme in the Steve Jobs era. Today, its hard not a heads up comparison — the stock price has been more volatile, the shareholders even more short term oriented. (Not sure if the naysayers are any louder though).

As I wrote almost a decade ago in 2005, Wall Street still does not understand Apple: Analysts Still Underestimate Apple; Sell-siders simply don’t ‘get’ Steve Jobs’ company, based on Wall Street Remains Clueless as Ever as to Apple’s Products.

Funny how some things never change . . .

 

Category: Corporate Management, Investing, R&D, Technology

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “Apple’s Stock Price Post New Product Announcements”

  1. Bam_Man says:

    Looks like classic “Buy the rumor, sell the news” type behavior, with the exception of the original iPhone launch. Which makes sense, since that was the truly TRANSFORMATIONAL product.

  2. Thomaspin says:

    Gruber is so lonely now ….

  3. Livermore Shimervore says:

    Apple branded TV’s will be big sellers and will add even more value to the company. Largely because Apple has become entirely a lifestyle brand. Their smartphone and tablet hardware is falling further behind Samsung, Moto, Google and HTC with each new launch. Apple products are no longer value proposition, meanwhile with Android 4.3, Google has bridged the software gap. I can tell you it is silky smooth and dead bolt reliable, way better and more flexible than iOS7. A year ago Apple had 90% lock on tablets, barely a year later not remotely close.
    The stock price falling after launches is consequence of those who expect more always being disappointed by Apple’s very transparent sand-bagging of device features merely to sell an interim phone less than year later with the missing features. But it’s not long before these inital stock-lowering let downs are ultimately drowned-out by tidal waves of consumers who buy Apple products in lockstep from one device to the next, they really don’t care that their being charged last year’s tech at next year’s price. Kind of like how people bought Windows desktops for home use, over and over again, when Apple clearly had the better product. Performance/value relative to the competition’s offering is no longer relevant to the majority of Apple products consumers — they want what everyone else they know has. Largely because they are about tech convenience and not chasing cutting edge capablities. An astonishing number, something like past 30%, believed the Iphone 4 was a 4G device when it really was only a 3G phone — the last *premium* 3G phone you could still buy at BestBuy that summer. What this means is that Apple simply can’t have it both ways. If they want to bring in the record revenue/profit numbers they have to downgrade the tech, the best example of this is the mini Ipad with an inferior screen but still with a $100 higher price than the competition. You can only pull that off when you have company that’s become the designer jeans of gadgets. If Apple want to please the ‘experts’ after each launch it will only mean smaller margins when the masses come into the Apple store for their lockstep fix.