Apple stock down following iPad and iMac event

It finally happened, the iPad Mini arrived. But that wasn’t all; a refresh of the iPad and new iMac and MacBook Pro hardware. We’ve been reporting on everything but the iPad refresh thanks to rumours and leaks for the past few months. But Apple’s stock has taken a bit of a tumble following the announcements.

A drop of 3.26% in Apple’s stock prices has been reported following the event showcasing the new devices. Questions will now be asked why this has happened, considering Apple usually experience a slight rise in their stock prices following a huge, or much hyped event. The iPhone 5 events gained Apple 10 points the day of its announcement.

What could be the reason for this drop? Let’s look at the obvious points:

Price: Apple didn’t really knock it out of the park with this one. The iPad Mini 16GB Wi-Fi has been given a price of $329 (Wi-Fi and Cellular model is $459). Not bad I guess, but Google’s Nexus 7 16GB is $249, Amazon’s Kindle Fire is $199 and Microsoft’s just announced Surface is $499. Okay, the Surface is $170 more, but that’s not the point. Apple may be entering into the lower end of the market, but there is something apparently more premium about the pricing of the iPad Mini.

iPad 4th Generation: This is one that didn’t need to happen. The iPad 3 is only 6 months old, and refreshing a device that some people may (or have) just purchased is a slap in the face to them. Slightly more powerful CPU, newer camera and adding the Lightening connector is something that could have definitely waited another 6 months at least. Apple has been refreshing the iPad approximately every 12 months, so why the rush to do it now? Just because they have the new connector on two devices doesn’t mean it needs to push it for the 3rd generation iPad. Yes, pricing for the device hasn't changed, but refreshing a device that is only 6 months old, for consistency reasons, almost smacks of desperation.

Features: Kind of lacking to be honest. The iPad Mini is just a smaller iPad 2, or a larger iPhone 4S. The 4th Generation iPad is pushing a new newer hardware, but nothing that pushes the boundaries of what the current crop of devices provide.

The one positive that Apple can take away from the event is the new design for the iMac. It’s simply stunning. Hardware inside is just a refresh, something that all OEMs do every six to twelve months. But the design, just wow!

You can refresh yourself with all our coverage of the event here for the iPad and here for Mac hardware.

Source: Forbes

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