Is the Apple bubble ready to burst?

Posted on Monday, Jun 25 2007 @ 15:43 CEST by Thomas De Maesschalck
Some financial analysts warn that the Apple bubble may soon burst. They believe that the current iPhone euphoria may set investors up for disappointment as the iPhone may not sell as well as anticipated.
Sales at those levels would outdo the iPod, Apple's best- selling product to date, for comparable periods. The danger is that Apple may fall short of projections for initial sales and damp investor enthusiasm for the product.

``There's definitely a lot of buzz,'' said Andy Hargreaves, an analyst at Pacific Crest Securities in Portland, Oregon. ``If they only sell 100,000, that would be bad'' and the stock will fall. Hargreaves is one of two analysts predicting two-day sales of 200,000.

With iPhone partner AT&T Inc., Cupertino, California-based Apple will begin selling the combination iPod and mobile phone on June 29 in the U.S.

Apple shares have gained 44 percent since Chief Executive Officer Steve Jobs unveiled the iPhone Jan. 9, almost seven times faster than the Standard & Poor's 500 Index. The shares closed at a record high of $125.09 on June 18. Apple fell 90 cents to $123 in Nasdaq Stock Market trading on June 22.

More info at Bloomberg.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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