The iPhone Effect

October 5, 2011 by Naser

Everybody anticipated Apple’s event yesterday. Much speculation arose about the first post-Steve Jobs event. Many believed that Apple was about to release a new iPhone. It wasn’t only the tech-savy consumers that were expecting the new iPhone, but also investors on Wall St. Before the event, Apple’s stock traded range bound, around the previous day’s closing price of $375. However, much to the disappointment of both the consumers and the investors, Apple announced an improved version of the iPhone 4 rather than a new model. The new iPhone 4S came to as a shock. Wall St didn’t react kindly, slicing $20 off the stock’s value, a decline of 6%, after the new announcement. The decline was later partially recouped, as the overall US market moved up by more than 4% in the last trading hour (S&P 500 went from -1.9% to 2.5%).

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