Consumer Reports Shaking Finger Leads to Drop in Apple Shares
July 14, 2010
(ChattahBox) – After Consumer Reports issued their official say on the iPhone 4, stating hardware problems and refusing to back the sales-buster, Apple shares dropped drastically, BusinessWeek reports.
This is the strongest evidence to support the possible recall of the product, which has been causing signal failures with consumers all over the world.
Originally, Apple admitted it was a hardware problem, and insisted customers spend additional money to buy a cover, sparking a great deal of anger from consumers. They quickly recanted this, claiming it was a software issue, and that it was the display showing an overestimation of service.
With the Consumer Reports call out, and a proceeding blog post stating that it should be Apple, and not customers, that will pay for a fix, the company shares took quite a hit.
Apple fell 2.1% to $251.80, a $5.49 decline.
“Apple’s image — and potentially iPhone sales — could be compromised if Apple does not explicitly — and constructively — address the issue of what it believes is wrong with the phone and how it will address it,” Toni Sacconaghi of Sanford Bernstein & Co. told BusinessWeek.
Time to own up and take care of it, Apple.
CORRECTION: In fourth paragraph, it should have been Apple, not Google.