Apple asks Chinese Amazon to stop offering iPads from resellers, shares slide more than 2%

0comments
Apple asks Chinese Amazon to stop offering iPads from resellers, shares slide more than 2%
Apple had a rare intraday reversal in its share price yesterday, which ended up more than $25 off their all-time highs, reached just the same day. Analysts were wondering what is going on, and whether this is simply due to the rebalancing of the NASDAQ index rumors, so Apple doesn't have such a major weight in it.

Apple's valuation is far from reaching the weight limit on the NASDAQ yet, though, and the index gurus have repeatedly said it doesn't need any rebalancing just yet, so there might have been other factors in play.

One of these factors that might have spooked Apple's investors, with its shares the poster child of many ETFs, hedgies and pension funds, is the trademark saga with Proview in China. Authorities are banning iPad sales in a few cities, and Apple itself asked the local branch of Amazon to stop offering iPads from other retailers until its appeal verdict comes in.

China is a market of huge and growing importance for Apple, so any hiccups there are likely to spook investors a bit, despite the fact that Apple doesn't make nearly as much from the iPad compared to the iPhone golden goose. Add that to the fact that some people just wanted to take some profits after Apple's nice ride to $500 a share in the past weeks, with automated orders to sell a bit of shares when they hit that threshold kicking in, and the rare 2%+ slide in Apple's shares makes much more sense.

source: WSJ & GoogleFinance
Can’t get enough of mobile tech?
Subscribe to access new exclusive content and perks.
You can still enjoy the standard PhoneArena experience for free.
  • In-depth reviews, tests & analyses
  • Expert opinions on the latest trends
  • Live community events and games
  • Ad-free browsing, discounts and more
Start Free Trial See the latest subscriber-only articles

Recommended Stories

Loading Comments...
FCC OKs Cingular\'s purchase of AT&T Wireless