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Consumer Electronics

Can Apple Put iPhone Rumors To Bed? (AAPL)

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By Douglas A. McIntyre Updated Published
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Iphone_logoUsually rumors on new technology items create buzz or create hype for shareholders, but they can also create unrealistic expectations that ultimately hurt the stock.  Apple Inc. (NASDAQ: AAPL) has been under the cloud already with only about one month under its belly of 3G iPhones.

The rumor mill has been saying that Apple would release a downsizedversion of the iPhone.  Essentially the rumors are about an iPhoneNano.  Even Business Week has covered it.  The prevailing rumor for astripped down and smaller version of the iPhone due sometime aroundChristmas.

There is just one small problem.  Apple cut its iPhone prices shortlyafter launching last year and took a little PR hit despite lowering theentry price to bring in more customers.  Then its 3G version came outroughly a year later with strong demand.  Its OEM has also been said to have bumped up production for the 3G iPhone.

But a newer version of the iPhone within months of the huge launch?This might create confusion or might create some resentment from thosewho have lined up to buy each wave of products.  Apple is cool.  Applefasion.  But if the company is going to make these bits of fashion asseasonal and irrelevant as fast as a one season clothing item, thencustomers may start feeling more resentment.

In today’s economy, keeping up with the Jones’s is easier to do.  Buthaving to constantly up-spend in shorter and shorter periods to keep up with them isn’t the right callright now.  We won’t address how Apple handled the Steve Jobs healthrumors.

Jon C. Ogg
August 8, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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