Thursday, August 2, 2007

Apple and Rotten Apples

We Apple fanboys are a sensitive bunch - I don't even own a single Apple product and I'm still a fanboy! And as with all sensitive people, small events affect us in a magnified manner. The case in study being the Apple stocks.

One of the benifits of being in an organisation that observes the ups and downs in the stock markets day in and day out, is that one notices how small, insignificant things affect these prices. Specifically, I'd like to apply this to Apple Inc. and its numbers.

Over the last year, Apple stocks have seen the best roller-coaster ride money can (or can't) buy. The steady rise since the time the macbook pro was launched to the time the iPhone was announced and beyond... (with a slight dip in the middle when rumours surfaced that the iPhone might be delayed) to the apex right after the iPhone launch. That was the crest where the momentum was at its peak. Going down would be a helluva ride...

Then it happened. AT&T announced results and iPhone sale numbers were revealed. Apple stock tumbled. Hard. The next day Apple announced results, and stock recovered. Yesterday, there were rumours of bugs in the iPhone and the Macbook Pro that required recalls, and stocks tumbled again! My point being - Apple is probably one of the most sesitive to rumours stocks out there.

And this trend is likely to continue as Apple is going to launch the iPhone in Europe, stocks will go up... iPhone might be hacked before that, stocks will go down, then go up immediately when over-sensitive stock-holders realise its a good thing. No network lock means more iPhones sold.
In fact, Apple may well have a strategy up there. A few months after the Europe launch, they have the option of unlocking the iPhone for use with other networs IF the performance is not as expected in Europe (as it has been seen in the US - 140K instead of the expected half a million). That'll make it a 'world' phone. BUT, if the iPhone is hacked before that, I'm sure they have a security update prepared in advance for all the gullible users who think the update would only be for a feature addition.


Apple has got its strategy spot on, quite like a chess master who can strategise up to 7 moves in advance and the permutations and combinations of that. Until then, all of us non-American users can only hope that the guys at Hackintosh pull the bunny outta the hat sooner than soon.

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