Harsh Light Shines on iPhone, iPod Sales

Right on. The dip in the stock has nothing to do with the company and everything to do with nervous investors. AAPL is a steal at anything below $175. 36-months from now the stock will be in the $600 range.

Word of mouth will always hurt a business. Check the internet - people are upset that Apple has crippled the ipod and iphone to force people into buying their accessories and not having the freedom to use the ipod in ways they were familiar. No video out. Can't use it as external storage. Older products do not work with it. Having to pay $20 for software that should have been free. Cripple safari browser. To quote the Artist DMX, "Stop being greedy"

Word of mouth will always hurt a business. Check the internet - people are upset that Apple has crippled the ipod and iphone to force people into buying their accessories and not having the freedom to use the ipod in ways they were familiar. No video out. Can't use it as external storage. Older products do not work with it. Having to pay $20 for software that should have been free. Cripple safari browser. To quote the Artist DMX, "Stop being greedy"

@patrick n What? 1. Apple's third-party iPod ecosystem is one of the most open of any devices out there. You can buy iPod accessories from hundreds of third-party companies. 2. Every iPod that plays video has video out. 3. Every iPod can be used as external storage. 4. The $20 Touch software upgrade was to comply with accounting laws. 5. Not sure at all what you mean by crippled safari browser. If you don't like Safari, Apple doesn't force you to use it. Download Firefox or one of the many other browsers for the Mac.

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Apple is far and away the hottest computer and entertainment brand out there. They continue to get the brightest talent business and have a great business plan. They will continue to delight investors and consumers.

Apple had the misfortune to report earnings on one of the the worst market days in history. Since then The short sellers and hedgefunds have been working the price like a yoyo. Apple will have a great year. When they announce an Iphone partner for China or split the stock at their shareholders meeting in March, this stock will head back up very quickly. The real Apple investors have kept their shares. Apples main problems are Option and Short sellers whacking the stock due to the high multiple.

Traditionally Apple's shares get walloped after January, then start picking up again a few months later. By Christmastime they're in full bloom, and then afterwards the cycle starts again. 2007 was only different because the iPhone got released in late Spring, disrupting this cycle. But in 2006 this same thing happened, the stock lost 38% before going back up again. 2008 looks like a return to the norm for AAPL. There is also recession fear driving some people to sell, but short term investors are playing this seasonal trend and momentum investors are caught up in it as usual.

Apple at $600? Michael G, your basis is on... comps, fundamental analysis, projected revenue multiples? Apple will not have the same market cap as GE in three years, especially considering the consumer discretionary sector's interrelation with the waning consumer spend. Study history: its never "different this time", and you cannot exceed long term growth averages indefinitely, because you return to, well, the long term average...

Anyone care to guess the cost of 2GB of NAND flash that resides inside a 2GB iPod Shuffle that sells for $50 ? Hint: it's less than $5

Its hard to not like Apple with zero debt and about $19 billion in cash! Its a buying opportunity... Who cares how much something cost to make and what we are charged to purchase it...everything has a mark up.

I can't believe anyone would have Blodgett on as an analyst or a a auto mechanic, the guy is guilty losing investors billions of dollars by recommendig stocks he wouldnt sell to his worst enemy. The guy should banned from talkig to anyone. Shame on yahoo, just tells me how hurting they are for content

Invest in AAPL/GOOG, and you will be happy at the year end.

Apple 's protectionist schemes (they are the worst) are hurting it just the same as when it blew its computer market share. Bricked iphones blamed on security issues - issues that mirculously worked themselves out a scant few weeks later. Then the insult of apple offering a downloadable feature set for early Touch buyers (adding features that were stripped out from the iphone and that should have been included) for the "bargain price of $20. Finally, there is the curiousity of Apple failing to announce a new Iphone or Touch at its World event and then putting out these new models a few days later - could that have something to do with the fact that the period for holiday returns at big retailers ran out a few days after macworld but a few days before the announcements? Yes apple it would have been shame if all those teenagers who scurried out during the holidays to buy the latest, greatest pod returned it to get the new fetaure set or to get a better touch. What is really going on now is apple is trying to move it market outside of the usual automatons that line bup to buy Apple products no matter what. Too many people got burned with 30% price cuts on iphones, bricked iphones, being charged for feature sets that should have been included and Apple's curious announcement timing. In other words, people are catching on that Apple thinks about money first and its consumers second. That may be reality, but it flies in the face of the propoganda that Apple has troweled out for years.

eric c i see Ur point, couldnt agree more, blodgett should be blogg-ed to exposure. he is a fake and worse. those not familiar with the tech bubble, this guy was squarely in the middle of it and heaven knows if he got paid to recommend companies but seems like there was no tech company he did not like especially if they were in silicon valley. if i were apple i would tell this guy to shut up.

BITAAWTF

Anyone who says that if you liked it at $203, then you should love it at $119 hasn't been holding it during the spiral.

Say again?

My teenage daughter and her friends do not like the look ad feel of the iPhone. hat concerns me because teenage girls buy lotsof phones