As you well know by now, yesterday Apple announced their new iPhones: the 5C and the 5S. The 5S packs amazing new technology such as a 64-bit processor and fingerprint detection into Cupertino’s latest flagship phone, while the 5C is poised to go head-to-head with lower market phones from Nokia and Samsung. All in all, it is an impressive market strategy and technological achievement.
Why then, did Apple’s stock drop 11 points after the announcements?
Here’s a thing: Apple stock drops after most iPhone announcements. What the wha?
Let’s look at a handy chart Quartz put together to illustrate the fact that almost every iPhone launch has tanked Apple’s stock momentarily:
Ever since the original iPhone was announced in 2007, Apple has been expected to revolutionize the phone market with each new iPhone launch. Because this is the real world we live in, each announcement since the original iPhone has brought evolution rather than revolution. This displeases investors.The iPhone 5 escaped this curse somehow, but the rest of the i lineup did not fare so well. But of course once those initial 5 days were over the stock rebounded back and continued on it’s merry way.
The lesson? Don’t be a reactionary, and instead profit off those that are.
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