The Stock Market is a hard thing to please. Just one month after iPhone shipments surpassed all expectations in one of the smoothest launches in history and just one day after Apple itself posted its highest ever third quarter over six per cent has been slashed from the company's share price.
The reason: iPhone activation figures have been deemed not up to scratch. Despite in excess of 500,000 units selling in the first 48 hours Apple has now confirmed just 146,000 customers were able to activate their handset during that time.
The (minimal) delay in users being able to splash out on these services upset the fickle stock market and bang: a $144.18 share price fell a whole $8.81 in a single day. Personally, I'd argue it was over-valued at the time anyway, was tied into AT&T's recent so-so Q2 earnings and had been due a natural resetting.
Ironically however Apple itself has just posted a record Q3 yesterday as well with profits of $818m from revenue of $5.41bn, a 33 per cent growth on the same period last year. iPhone and (more importantly) iPod sales now also account for more than 40 per cent of overall business.
“We’re thrilled to report the highest June quarter revenue and profit in Apple’s history, along with the highest quarterly Mac sales ever,” said Steve Jobs, Apple’s CEO. “iPhone is off to a great start — we hope to sell our one-millionth iPhone by the end of its first full quarter of sales — and our new product pipeline is very strong”.
Clearly however the Stock Market wasn't too impressed and shares dropped another one per cent at the end of trading today. Obviously some people are never happy...