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Thursday, October 13, 2005

Apple Sells Millions Of iPods, Shareholders Angry

An article that complains about Apple stock dropping. Of course no one looks at what happened to Apple stock before this announcement. The was at an all time high, the stock had been going up because Wall Street believed that Apple would sell 8mm iPods. When they found out they didn't and might not sell as many as they would like during Christmas the stock took a hit.

They led people to believe they would sell 8 million iPods but only sold 6.5 million, a miss of more than 18%. The stock, which was already at an all time high, dropped 10% on the news. Not only did Apple state that they didn't sell as many as iPods, they also stated that they would have component shortages and would have NO IDEA when those shortages would be resolved. i.e. even though they have a hit on their hands they can't ship any iPods. I think that is a pretty huge statement for a company to say and the stock got sheared for it. What would happen if Microsoft said they could no longer sell Windows for an indefinite period of time because of manufacturing problems? There would be a huge drop in the stock.

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