Apple’s iPhone: Not So Hot After All?

AT&T and Apple are demonstrating an old adage: What goes up must come down. The same two companies that saw shares rise in the midst of iPhone hype are watching their shares take a hit in the wake of fewer-than-expected iPhone subscriptions.Apple’s stock was down $8.81 per share, or 6.13 percent, to $134.88 at the close of trading on Tuesday. AT&T shares, meanwhile, were down 35 cents, or 0.87 percent, to $39.68. In Wednesday morning trading, Apple gained $2.11, or 1.56 percent, to settle in at $137.00 while AT&T gained 80 cents, to settle in at $40.48. While some analysts expressed surprise, and others said they were satisfied, investors were clearly unhappy.

Apple’s iPhone went on sale June 29 with high expectations. Some analysts had estimated that 700,000 iPhones were sold between Apple and AT&T in the first week it was available. However, AT&T’s second-quarter report shed light on the guesswork, indicating the reality fell short of the hype. Only 146,000 iPhones were activated on June 29 and 30.

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Add comment July 26th, 2007