Apple shares take a pounding as Air fails to impress

Apple Inc. shares continued to take a pounding for a second straight day Wednesday, with investors and some industry analysts expressing disappointment with Apple's latest announcements at the annual Macworld Expo.

Apple's stock cut its losses, but was still down by $7.47, or 4.4%, to trade at $161.66 in afternoon action, adding to the previous session's losses in which the stock gave up more than 5%.

Part of the reason for the decline was attributed to concerns about Intel Corp.'s disappointing outlook, as Apple exclusively uses Intel processors in its line of Macintosh PCs.

At Bernstein Research, analyst Toni Sacconaghi said that the product announcements were largely as expected, "if not modestly below expectations," and called the MacBook Air release one of the highlights of Jobs' speech.

But he commented that despite the uniqueness of the MacBook Air -- the laptop has a 13.3-inch screen and a full keyboard, measures just 0.76 inches at its thickest point and doesn't include an optical drive -- he believes the new notebook won't do much for expanding the market for the Macintosh.

Sacconaghi also said that with the MacBook Air compromising such hardware items as the optical drive and only having one USB port, he sees the laptop as " competing primarily with other Mac notebooks" and will be targeted at consumers. Because of this, the analyst believes the MacBook Air won't extend Apple's offerings into new market segments.

View: Full Article @ CNN Money
Link: Google Finance 160.25 (at time of posting)

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Uh oh! Microsoft went down today, Vista must be worse than ME That's the kind of attitude people are taking here and the MacBook Air hasn't even shipped. I hate it when people bash a product they haven't even used, let alone one that had not affect on the stock price.

Like you said, stocks go up and down. This isn't a news story, it a story for Microsoft fanboys to get their rocks off, nothing more.

Oh BTW, Intel went down ($-2.81) too because of the MacBook Air.

Hurmoth said,
Uh oh! Microsoft went down today, Vista must be worse than ME That's the kind of attitude people are taking here and the MacBook Air hasn't even shipped. I hate it when people bash a product they haven't even used, let alone one that had not affect on the stock price.

Like you said, stocks go up and down. This isn't a news story, it a story for Microsoft fanboys to get their rocks off, nothing more.

Oh BTW, Intel went down ($-2.81) too because of the MacBook Air.

Intel went down because they issued a sluggish forecast.

GreyWolfSC said,
Intel went down because they issued a sluggish forecast.
Yeah, thanks for that, I guess you missed the part where I was being sarcastic.

if you actually follow apple's stock price prior to and after events like macworld, wwdc and such.. you'll notice that it almost always go up before the event, and go down after the event. in the stock trading world, the phenomenon is called 'buy on rumour, sell on news'. the only time that i can recall when apple's stock price went up after macworld type event was when steve announced boot camp.

So now we have people complaining about no optical drive. First they said PC's would flop because they are no longer shipping with 3.5" floppy drives, zip drives and 5" floppy drives. Now they think the world is coming to an end without the optical drive.

Did anybody watch the keynote where it was stated that this was intended as a secondary mobile unit/desktop unit for people? It's a unit that you can install software from another pc in your home, and then it's all set. All updates can take place wifi, all music and movies can be stored onto the air wirelessly via home networks, business networks, wifi. It does everything you need for someone who just wants to do up documents, email, browse the web, watch movies, listen to music, back up wirelessly, and finally, will fit in your briefcase pocket.

The price is for the form, the cost to reduce part sizes, and of course, Apple's name.

AWBrian said,
Did anybody watch the keynote where it was stated that this was intended as a secondary mobile unit/desktop unit for people?

So what. What kind of lame marketing is that. We dont want you to have buy just one new pc you need two now. Its nice looking but is it worth the thin size? Spend you money on a thicker size and one that does it all for you.

AWBrian said,
Did anybody watch the keynote where it was stated that this was intended as a secondary mobile unit/desktop unit for people? It's a unit that you can install software from another pc in your home...

THERE YOU HAVE IT! "Install software from a PC!!!" Thank God we all now know the truth.

It has little to do with the new mac air but more to do because there is a sense in the public that apple are greedy, exploitive of it consumers and generally too arrogant to bear.

Beastage said,
It has little to do with the new mac air but more to do because there is a sense in the public that apple are greedy, exploitive of it consumers and generally too arrogant to bear.

Really is that your opinion or any facts in there?

Whos this public you speak for?

What about Sony, MS, you think they are not any worse?

How come so few trolling here do the same in similar threads about news storys?


Really its getting tiresome

evo_spook said,

Really is that your opinion or any facts in there?

Whos this public you speak for?

What about Sony, MS, you think they are not any worse?

How come so few trolling here do the same in similar threads about news storys?


Really its getting tiresome

You really like to pull that one out, don't you? If you bother to read any of the Windows news on the front page you will see Mac users commenting on them as well. Every user here, including you, is free to comment on any news however they wish within the site rules...

There is a hell of difference on what has being going on recently by the windows bashers, the site has become unpleasant. There is no logic in posts except to bash.

I asked you to point out posts where I'd bashed MS.

What you found and thought bashes where I didn't think the ZUNE could beat the Ipod BECAUSE IT WAS ONLY SOLD IN THE US

and that MS should find a proper purpose for the Touch table which I SAID WAS A WONDERFUL TECHNOLOGY

This place is really hitting the dumps especially when one of the admins posts a flame opinion piece which he had to totally rewrite

What I don't get is that people were complaining about Apple not offering an ultra-mobile before, they wanted Apple to bring one out, and now that Apple's delivered it they don't want it anymore.

thenewbf said,
What I don't get is that people were complaining about Apple not offering an ultra-mobile before, they wanted Apple to bring one out, and now that Apple's delivered it they don't want it anymore.

We did want one but we did not want to pay a ridiculous price for it! They have some nerve to expect people to pay $3200 for the MacBook Air with SSD. We all know that SSDs are susceptible to wear and tear very quickly and 1000 clams for a HDD that will die in less than a year is not something people are prepared to throw money on. Plus it doesn't make THAT much of a difference over regular drives. Once it surpasses tha platter HDD bottleneck (and it isn't very big) it will find that the next bottleneck is probably the RAM or the processor so it is useless in this perticular model.

I have a MacBook Pro and an iPod but I am really angry at this damned company right now. I think people will start labeling them as crooks!

obsolete_power said,

We did want one but we did not want to pay a ridiculous price for it! They have some nerve to expect people to pay $3200 for the MacBook Air with SSD. We all know that SSDs are susceptible to wear and tear very quickly and 1000 clams for a HDD that will die in less than a year is not something people are prepared to throw money on. Plus it doesn't make THAT much of a difference over regular drives. Once it surpasses tha platter HDD bottleneck (and it isn't very big) it will find that the next bottleneck is probably the RAM or the processor so it is useless in this perticular model.

I have a MacBook Pro and an iPod but I am really angry at this damned company right now. I think people will start labeling them as crooks!

are you joking, doesn't make that much difference?? have you seen the price of SSD

The reason the stock has dropped is that companies and financial houses bet on the stock on the buildup to MacWorld. Then hoping Apple will pull out something such as the iPhone they think they will get a quick profit from a quick sale.

These companies are in it for the money. A real investment house / investor would look at the keynote and the future potential from Apple announcements.

While the MacBook Air will probably sell well, and get Apple a larger portion of the portable market the launch of that product shouldn't effect the stock price in a negative way. Its not on sale yet, investors will bet money on initial sales to see how the Air plays out over the next year.

The stock price fell because certain investors wanted another iPhone style launch, tons of press, something new and exciting, a subscription model aimed at getting Apple profit + initial sale value. When that didnt happen they wanted to sell and the stock price dropped.

What these short term fools dont realise is that its the movie rental announcement that will over the coming years, help define new markets for the industry and Apple as well. With all major movie companies onboard Apple could pull another iTunes expect this time in the movie rental business.

This would drive the sale of future Apple video products, ipods and phones, along with the halo effect.

Thats what a good investor should look at, not a short term profit from interest in a single product, but a long term stock increase (such as Apple has seen with iPod + iTunes) due to their possible domination of the online Movie sales market.

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