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Contact this writerJust 24 hours after word of AT&T's disappointing iPhone activation figures - news which sunk Apple shares about 6 percent, Jobs announced last night that Apple's third-quarter profits are up 73 percent. In the markets this morning, Apple shot up more than 8 percent on that news.
I was curious as to what caused the minor Apple sell off yesterday, seeing as the company in question is a consistent winner. To me, that would be the equivalent of damning A-Rod to mediocrity after a strikeout, or comparing Peyton to Jim Everett following a loss. In the grand scheme of things, the all-stars - in sports and markets - are who they are because of their consistent success over a long stretch. Apple fits that mold.
There are plenty of reasons why AT&T's figures failed to meet such enormous expectations - secondary sellers, the service provider's lag in its opening weekend, etc. Perhaps yesterday's Apple sellers saw something I didn't, but their decision to pull back on the reigns did little in avoiding the Wall of Worry. I'd be curious to know how many of those sellers are back in the saddle with a lesson learned.
Today, we again point out Apple's enormous expectations for the iPhone in its opening weekend- a goal to sell somewhere between 300,000 to as many as 700,000. The official number of units sold is pinned at 270,000, not what Apple hoped for but still quite phenomenal considering said figure accounts for two days worth of sales. Apple may have missed their target, but you won't find me refering to the iPhone as a failure.
I'll reiterate from past articles: I'm no expert. However, if I took on the noble task of running my own investments, selling shares of AAPL would be right up there in things to do along with eating glass, getting a Slayer tattoo on my eyeballs or buying a Nickelback album. Likewise, I'm not one for forecasting, but I'll stick my neck out just this once: The iPhone will sell a lot of units. Ambiguous? Absolutely. All the more to cover my collective ass pending an unforeseen managerial meltdown.
So, in short, yes, iPhones are a good investment. What Apple product isn't?
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by Lou Dipietro
Just 24 hours after word of AT&T's disappointing iPhone activation figures - news which sunk Apple shares about 6 per...read more
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iPhone's may be a good investment in technology for those who do not have a phone, or a very meager phone with a rath...read more
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Bad
by J. L. Graffam
It's rather ironic that I am writing an opinion piece about technology on a website that more or less is a byproduct of our dependence on all things new, but websites are easily changed, refreshed, and updated. iPhones will be updated, they will be changed, and they will be updated, but in case you didn't realize when you plucked the $500 down for a new one with the smaller memory version; your will not fit that bill.
Phones of any sort, be it a regular camera phone, PDA, or smart phone are not investments in the traditional sense. An investment is something we put money towards to have an impact on our future. A lot of time there is risk involved. Sure, for those who want to be hip and in the now, buying an iPhone is a great investment in today, but do you really need it? Do other phones do almost, it not all the same things? Are those phones cheaper to buy? What do you do next year when the cost of your iPhone is down to $250 and the new one on the market has a new feature and will run you $600?
Having the newest and the best innovations is great, but sometimes it's good to know when something has long-term value. People get into a pattern of always buying the newest, cutting edge items, when they really should be buying something more practical and putting the rest of the money towards better use.
For example, I'm willing to bet that almost every, if not all, the people who bought iPhone, already have a nice cell phone with Bluetooth and internet capability. Furthermore, I bet these same folks have iPods. No, not the Nano, but the ones with the bigger screen and the loaded memory. Additionally, I'm willing to bet that both of these work perfectly fine, despite being separate devices. Now how about you take the $500-$600 dollars and either allocate that towards your 401K, IRA, or through it into a mutual fund. Then wait a year. Your devices will still probably work just as well, but you'll have made an investment that has yielded you something for the future. Women may not be swarming to see your new iPhone, but did you really think they would anyway? Bottom line; if you have the money to throw around, go ahead and buy one. It will still be a poor investment, but will not have the same economic impact that these have on most of their buyers.
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