Apple shares fall as iPhone unveiled

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THE new iPhone has been hailed as “the biggest leap forward” in mobile phone technology in a decade, so why are

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Apple's share price takes a hit after iPhone release

THE new iPhone has been hailed as “the biggest leap forward” in mobile phone technology in a decade, so why are investors so jumpy?

Apple Inc’s share price had a tumultuous day after the company’s latest product announcement in Cupertino, California on Tuesday.

The company’s shares rose 1.8 per cent to $161.50 on Monday in anticipation of Tuesday’s big reveal.

Then, while its stocks were pretty flat for most of the morning, the price began to rise again when chief executive Tim Cook announced the new Apple Watch and Apple Store design.

Finally, just before 2pm EST, Cook

unveiled the new iPhone 8 and “game-changing” iPhone X, which boasts features such as wireless charging, facial recognition unlocking and an edge-to-edge screen making it “beautiful to look at and incredible to hold”.

At this point in time, Apple stock peaked at $US163.54.

But, rather than boosting the share price further, the announcement preceded a swift fall, with Apple shares closing the day’s trade at $US160.31 — lower than the opening price of $US162.61.



So why did investors decide to dump Apple shares? Were they, like some,

ambivalent about the idea of an iPhone without a home button?

The answer may have less to do with the technology and more to do with implementation.

Apple’s release date of November 3 was reportedly later than some investors had expected, while others cited worries about whether Apple would face supply shortages. And some said traders were just taking profits after the announcement spike.

“There were no blockbuster surprises, although what they’re doing with the products is all pretty good,” said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York.

Few Apple product announcements have lived up to the impact of the original iPhone on the company’s share price, and it appears that the 10th anniversary launch is no different.

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