TEMPO.CO, Jakarta – The share price of smartphone producer Apple Inc. (NASDAQ-APPL) dropped just hours after the launch of its sixth-generation iPhone and smart watch. The stock price decline indicates that investors respond negatively to the iPhone6 and the Apple Watch.
On Tuesday, APPL closed 0.4 percent lower at US$97.99 per share. The stock gained 2.5 percent in the day session, but eventually closed at a corrected position. D
Steven Milunovich, an analyst at UBS, said the decline in Apple's stock price so soon after launching a new product is something normal. A few days before the company announced the release of the iPhone6, Apple stock had risen by 0.3 percent.
"Investors want to know whether the iPhone6 will be better than the previous product. Yet many considers that the iPhone6 is not very special," Milunovich said in New York, yesterday.
Apple launched the iPhone 6 and iPhone Plus with screen sizes larger that the previous generations of iPhone. The products are launched as answer to competitors Samsung and Nokia, both oh which had had large-screen smartphone units since over two years ago. Apple also launched a smart watch called Apple Watch that comes with a touch screen and four sensors, touted to be its answer to Samsung's Galaxy gear Watch.
According to data compiled by USA Today, Apple's stock price is always corrected every time the company launches new products. After launching a new iPhone, APPL fell by more than one percent on average. The only time the company recorded a stock price gain after a product launch was when it released its first generation of iPhone in 2007, when APPL rose by 8.3 percent.
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