The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Bogus iPhone Cutback Claims Hurt Investors

Bogus iPhone Cutback Claims Hurt Investors

by , 11:20 AM EDT, August 1st, 2007

After rumors that Apple was scaling back production of the iPhone surfaced on Tuesday, the company's stock took a sharp nose dive and dropped about US$9. Unfortunately for investor pocketbooks, that rumor turned out to be unfounded, according to CNBC.

TheStreet.com cited a report from the analyst firm Miller Tabak & Co., but now the company has stated that it issued no such news. Peter Boockvar, a trader at the firm, commented "We weren't issuing any kind of report. We don't have an Apple analyst."

Despite the inability to confirm that the rumor was false, investors took it as fact, driving Apple's stock down and cutting $8 billion off the company's market cap.

Apple faced a similar situation earlier this year when a rumor surfaced that the company was delaying the iPhone launch for an additional six months. That rumor also turned out to be false, but the company's stock dropped several points before the information was corrected.

The Mac and iPod maker's stock still hasn't recovered from yesterday's shakeup. Apple is currently trading at $129.85, down 1.91 (1.45%).


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

  

Recent TMO Headlines - Updated August 26th

Thu, 7:20 PM
The Battery That's Lasted 176 Years
Thu, 6:32 PM
Enough with iPhone Headphone Jack Kvetching
Thu, 6:30 PM
How to Enable Apple Watch Screenshots in watchOS 3
Thu, 6:11 PM
Apple Patches Critical Zero-Day Data Security Exploit in iOS 9.3.5 Update
Thu, 4:22 PM
The Complete iOS 9 and 10 Development Bundle:
Thu, 12:22 PM
Three Ways to Free Up Space on your iPhone and Remove Old App Data
Thu, 11:48 AM
Adam West and Burt Ward Return for Batman '66 Animated Movie
Thu, 11:08 AM
Apple Music Festival Starts Sept 18 with Elton John
Thu, 11:00 AM
TMO Daily Observations 2016-08-25: Interview with Ruby Calling's Jean MacDonald
Thu, 9:23 AM
OS X: Opening an App When You Log In
Wed, 9:46 PM
What You Need to Know about the U.S. Defending Apple's European Taxes
Wed, 6:01 PM
ACM 374: The Apple Narrative, Music Industry Directives, and Samsung's Spoiled Milk
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!