Breaking: How Wall Street Is Reacting to Apple’s WWDC; Apple 3G iPhone For $199 Starting July 11th; Other Features

Apple Logo
Apple Inc. (NASDAQ:AAPL) is taking a little bit of a beating on Wall Street surprisingly.  The stock price closed at $185.64 per share last Friday.  Right now the stock is at about $177.34.
Update 1: 3:41PM EST – Stock is up at $179.14
Update 2: 3:56PM EST – Stock is up at $181.22
Update 3: 4:00PM EST – Stock closes at $181.61

This is happening despite all of the announcements Apple is making at the WWDC in San Francisco, Calif.

Apple Announces The 3G iPhone
The Apple 3G iPhone will have thin edges, a headphone jack, iPhone 2.0 firmware, and wil have a plastic back.  The 3G iPhone will be able to work internationally, will be faster, work with enterprise software, be able to run third party applications, etc.  With 3G speeds, the iPhone will be able to load pages 36% faster than the N95 and Treo 750.  The battery life is about 300 hours of standby, 8-10 hours when running on 2G, 5 hours when running on 3G, 7 hours of video, and 24 hours of audio.  The 3G iPhone also has GPS built in.  The Apple 3G iPhone will be launching in 70 countries this year and will be retailing at $199 for 8GB and $299 for 16GB.  The 16GB will be available in white.  All of this will be available on July 11th.

MobileMe is software created by Apple that syncs with the iPhone.  Outlook mail, calendar, photos and albums can be synced back-and-forth.  MobileMe works with Windows too.

Developers can set the price for third party apps and keep 70% of revenue.  There are parental controls on the iPhone for explicit content on YouTUbe, Safari, iTunes, applications, etc.  The new iPhone will have a search feature to find contacts.

There is a medical application for download called Modality.  The application has Netter’s Anatomy maps.  Once a part is selected from the body, you can pull more information about that part from Google and Wikipedia.  There are also quizzes on the 3G iPhone to name body parts.

The MLB has an application too.  The application shows today’s games, stats, and video highlights.

There is a music application that has a bass guitar and a piano.  The music can be remixed, recorded, dubbed etc.  The application is called Band.

Pangea created a software game called Enigmo.  Enigmo is touch-based physics puzzle game.

Six Apart’s TypePad has launched their own iPhone application too.  It is focused around blog editing.  TypePad users can add photos, change around the body, title, look & feel of their blogs.

Loopt created an application that allows users to click on a friend, show their details, find cafes nearby, etc.

eBay created a way to bid for items on the iPhone.

Cisco Systems built VPN into the 3G iPhone.  Cisco had 35% of Fortune 500 companies test it including the top 5 banks, information security companies, entertainment companies, airline companies, universities, etc.

Information Source:
[1] Engadget: iPhone 3G is finally official, starts at $199, available July 11th by Paul Miller

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at

Breaking: How Wall Street Is Reacting to Apple’s WWDC; Apple 3G iPhone For $199 Starting July 11th; Other Features Comments

  1. cyruswen says:

    AAPL’s price drop is primarily caused by the unexpected dramatic price drop in the 3G version.

    Nonetheless, I believe Apple can withstand this strategy because:

    1) it is now open to 3rd party applications and will get a healthy 30% cut of those applications’ sales;

    2)Those apps has received astonishing acclaims, bringing convenience into the lives of gamers, musicians, sports fans, entrepreneurs and even the protective parents. Hence the potential revenues in point 1).

    3) Additional to the standard ‘price drop = higher sales volume’, greater iPhone sales translates to more sales in other Apple product areas, since their convenience are all intertwined by products such as mobileme (the new .mac) and time capsule.

    All-in-all, if today’s dip is mainly based off of the perception (lower future expected earnings) of this price cut, then I see an opportunity.

  2. raman kandola says:

    AAPL’s I-phone would easily be able to sell over 30 million unit in less than 36 months. This is a big segment which would bring a big dent for companies like Motorola, Nokia, etc.

    I-Phone should easily cross the 15 million mark by the end of this year.

  3. Amit Chowdhry says:

    The price definetely helps, but AT&T requiring a 2 year contract for that price doesn’t help.

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