Cook: Our products are not only for the rich; analyst sees big drop in Apple's stock after tomorrow

Cook: Our products are not only for the rich; analyst sees big drop in Apple's stock after tomorrow
Some people complain that Apple manufacturers devices for the rich and wealthy, and that as a result, they are priced out of purchasing Apple products. But if you ask Apple CEO Tim Cook, he will disagree. Speaking to Fortune, Cook points out that an Apple iPad and an Apple iPhone can be purchased for less than $300 each.  "And so these are not for the rich," said the executive. The Chief Executive also pointed out that with an active installed base of over 1 billion products, Apple couldn't be manufacturing just for the rich since there aren't that many rich people in the world. Cook also said that Apple has changed the world by producing tools that allow people to do things that they couldn't do otherwise.

Speaking about Apple and its products, tomorrow we will see the company unveil the tenth anniversary iPhone, which will include many features never seen before on the device including an OLED panel with an edge-to-edge screen, face recognition, wireless charging, and an "L" shaped battery that is expected to provide long battery life. With investors looking ahead to tomorrow, Apple's shares rose 1.81% today (or $2.87) to $161.50. But one analyst says that tomorrow's unveiling of the iPhone X will lead to a sharp drop in the price of the stock.

Loup Ventures analyst Gene Munster said last week that the introduction of the iPhone X will kick off an 8% to 10% decline in Apple shares over the next one to three months. Munster says that Apple investors will start "wringing their hands" when they look ahead at the next two quarters. The former Piper Jaffray analyst did add that the iPhone X will lead to a higher growth rate for the product, although the analyst apparently doesn't see investors terribly excited by this.


The analyst also expects the Apple Watch, which currently makes up 3% of Apple's business, doubling its contribution to the company once it no longer needs to be paired to an iPhone to connect to the internet. The Apple Watch Series 3 will be introduced tomorrow, and it should come with an LTE radio and an embedded eSIM card.

Will tomorrow's eagerly awaited announcements mark a short term top in Apple's stock? Will the Apple iPhone X pricing exclude everyone but the wealthiest people in the world? By this time tomorrow, we will know the answers to these questions and many, many more.

source: Fortune, CNBC

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59 Comments

1. bucky

Posts: 3774; Member since: Sep 30, 2009

When has it not dropped after rising consistently months prior to announcement??

13. Finalflash

Posts: 4062; Member since: Jul 23, 2013

This time it won't, especially considering they will have the only FPS under the screen which is infinity^2 % confirmed to be coming tomorrow.

43. limporgyuk

Posts: 353; Member since: Nov 06, 2013

where did you read that it would have an underscreen fingerprint scanner?

46. seret6

Posts: 279; Member since: Aug 14, 2013

Final flash was being sarcastic

2. fyahking

Posts: 1146; Member since: Jan 28, 2015

I see the poor buying their products.

3. Awalker

Posts: 1962; Member since: Aug 15, 2013

I see a lot of people who are not too well-off with Apple products.

11. Finalflash

Posts: 4062; Member since: Jul 23, 2013

Correction, you see a lot of poor people in the states buying iPhones. Poor people usually cannot afford macbooks or other Apple gear no matter where they are because they aren't subsidized.

40. penguinbelly

Posts: 162; Member since: Dec 27, 2014

A lot of hookers buy iPhones exclusively, too.

45. Wiencon

Posts: 2278; Member since: Aug 06, 2014

Tbh I have yet to see a porn in which main actress uses Android or WP

47. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Android varieties of launchers may be too difficult for them to use, or they maybe they just like to be seen with an iPhone. Actually, there nothing wrong with using an iPhone, just the insecure iFan troll in PA that makes it such a big deal.

48. Nathan_ingx

Posts: 4767; Member since: Mar 07, 2012

Too blonde for Android.

59. mrmessma

Posts: 271; Member since: Mar 28, 2012

Most hookers aren't poor.

32. MrShazam

Posts: 987; Member since: Jun 22, 2017

The average bugger flipper can own any apple product, just the arrogant and hypocritical sheeple among their users think it's only for the rich...

50. Jimrod

Posts: 1605; Member since: Sep 22, 2014

I know plenty of people with iPhones and not a single one thinks it's a status symbol of any kind, they just like to use them. The only ones who think it's for the rich are young teenagers and bitter Apple haters trying to be hip by hating the evil Apple as is trendy now.

7. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Hell...they sell iPhones at Cricket, Virgin, and Wal-Mart. They used to be kind a exclusive, but I trailer trash, losers, and kids with em nowadays. The longer things are out, the easier it becomes to acquire them. Let's get on to the announcement, so I can see if it's worth my money, or something to skip.

12. Finalflash

Posts: 4062; Member since: Jul 23, 2013

No, only iPhones are subsidized from Apple's lineups so mostly just iPhones that can be seen on kids, losers, etc. Those groups wouldn't be caught dead with a macbook pro, because they can't actually afford that.

14. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

The iPhone was what I was only pertaining to.

15. kiko007

Posts: 7491; Member since: Feb 17, 2016

Why do they have to be "kids and losers"? Are people who buy Android flagships on subsidies " kids and losers" too?

20. darkkjedii

Posts: 30833; Member since: Feb 05, 2011

Sure in the hell are. I'm just speaking on what I see. I keep it real bruh, and I see those 3 types I named. I also see well to do people, but that demographic doesn't stress the ease of obtaining subsidized phones.

24. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Explain how kids in school have MacBook? Do you know what credit is? It's buy now pay later. Anyone with a decent job even making minimum wage coukd buy a MacBook. It may not be a brand new one, but they can get one. Lots of people can afford Apple products. Tbey just don't want them whixh the market has show. Apple tailors their products to a small market for a reason. Saves them money, high profit on less volume. If you can't afford the fancier model, tbey will buy some other Apple product. Apple still gets the money.

17. domfonusr

Posts: 1070; Member since: Jan 17, 2014

Heck, if I can get an iPhone, then anyone in the US can! LOL

8. GoTstan

Posts: 386; Member since: Jul 25, 2015

Folks, get ready for a taste of the future tomorrow, apple will finally introduce wireless charging to the world. Simply astonishing

9. mikehunta727 unregistered

iPhone X might have Type C port actually according to some code leak; usbc-fw-personality usbc-flash-update

29. epic_ninja420

Posts: 129; Member since: Nov 18, 2014

If that is the case I'll likely pick one up. Although I cant see Apple fragmenting their phones like that.

16. kiko007

Posts: 7491; Member since: Feb 17, 2016

I don't care if they're for rich people, poor people, green people, or Reptilians; just make them fun again.

18. KingSam

Posts: 1372; Member since: Mar 13, 2016

Where can I buy an iPhone for $300.....not apple website. Maybe carrier deals? The $330 iPad yes but..... Get me a current iPhone for $300 Mr.Cook. Not some dinosaur 5s.

19. jellmoo

Posts: 2531; Member since: Oct 31, 2011

To be fair, if you check the source article Tim Cook says $300 for an iPad and then says in that ballpark for an iPhone. The SE runs for $399, which I guess you could call "ballpark".

26. threed61

Posts: 259; Member since: May 27, 2011

Target had paygo SE's for $288 yesterday.

21. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Of only rich people bought iPhones, Apple would go out of business. That's fact!

23. TheOracle1

Posts: 2049; Member since: May 04, 2015

Tim Cook is speaking to his sheep. Unfortunately 98% of phone buyers (android and ios) are none the wiser when it comes to how their phones work or why. I've yet to see a new iPhone model for $300 in any iteration since 2008.

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