It is said there is no sound in a vacuum. And Wall Street abhors a vacuum the way dogs abhor vacuum cleaners. Which, ironically, make a lot of noise.
Apple Insider had investors reacting poorly to Apple’s lack of noise about iPhone 5c pre-orders on Monday. Shares in the Cupertino-company took a beating the whole day. According to the piece, market watchers attribute the beating to “the fact that Apple did not publish a press release touting preorders for the iPhone 5c,” after three full days of preorders.
They would be the ones who don’t assume the best.
The piece is willing to accept the premise that preorders for iPhone 5c are relatively weak compared to preorders for iPhones from years past. “While the iPhone 5c is a new model,” it notes:
...it includes many of the same parts as last year's iPhone 5, while lacking key features of the iPhone 5s such as the Touch ID fingerprint scanner, new A7 chip, and M7 motion coprocessor.
And there’s the potential thing. Or, “therein lies the rub,” if you wanna go Shakespeare. There’s a second phone coming out this week - the premium, iPhone 5s. For which preorders are not available. If it goes the way the iPhone 5 did last year, as well as the iPhone 4S the tear before that, iPhone 5s will likely sell out by the end of next weekend, then play hard to get for weeks to follow.
For a lot of investors, though, the silence was deafening and they had to get away from it. Apple shares closed at $450.12, down $14.78 for the day, or 3.18%. Shares of the company were trading just over $500 before last Tuesday’s iPhone event.