Apple shares take a dive on bad iPhone news
Excitement surrounding 10th anniversary upgrade dampened by data speed report
News that Apple’s new iPhone, scheduled to debut later this year, will not be able to take advantage of faster data speeds from US wireless providers has sent shares dropping as much as 5.69% on Friday. As of 3:00 EST shares were down 4.15%.
It turns out the news that Verizon, AT&T, along with other wireless providers have upgraded networks to allow for speeds up to 100 times faster than current speed, will not be much help for new iPhone users, as Bloomberg reports:
“One of Apple’s suppliers, Qualcomm Inc., sells a modem capable of the 1 gigabit download speeds. Another supplier, Intel Corp., is working on a modem with the same capability, but it won’t be ready for the iPhone’s introduction, according to people familiar with Apple’s decision.”
The stock has been boosted by enthusiasm ahead of the new model, expected to benefit from an “upgrade suprecycle” and hype surrounding the iPhone’s 10th anniversary.