Apple share price fell 2.5 percent (US$17.25) to US$673.54 at close yesterday continuing the fall of 1.3 percent from the day before, after the news that it had sold five million iPhone 5 units in three days.
Apple has confirmed that it sold five million iPhone 5 smartphones in the first three days after its on Friday 21 September, but this hasn’t stopped analysts from complaining that Apple has missed targets, and some investors have pulled out of the stock, causing the value to decline US$27 in two days.
And yet, despite the negativity, there are still high hopes that Apple’s iPhone will buoy the weak US economy this spring. A USA Today report notes: “U.S. sales of Apple’s latest must-have gadget could pump more than US$3 billion into the economy by year’s end, say some economists and technology analysts.”
It is not known whether the riot at Apple manufacturing partner Foxconn, has affected the production line for the iPhone 5.
The negative news has caused some concern in the investor community. Marketwatch has published five reasons to sell Apple shares, among the reasons they note the absence of late Apple CEO Steve Jobs and his ability to persuade people that Apple products are “magical” and “Economic headwinds”, specifically the fact that markets that Apple operates in are “saturated”.
Investors may want to wait until Apple announces the results of its fiscal fourth quarter on 23 October. Apple’s fourth quarter ends on 30 September. Analysts polled by Bloomberg expect the company to report profit of US$8.35 billion on sales of US$36.1 billion, according to the average of analysts’ estimates.