Apple fans rejoiced as the iPad Mini was announced today. The company also announced new iterations of the MacBook Pro, iMac, Mac Mini, iPad and iBooks. The audience in attendance at the event were obviously excited with each and every announcement. The stock market, however, was not as enthused.
On the heels of the iPad Mini announcement, Apple's shares have dropped 20 points, or 3.26 percent, to $613 per share. Since then, the share price has been in a constant state of fluctuation.
So what caused the drop? The Wall Street Journal suggests the drop was due to a bad first impression from the iPad Mini. Some analysts were expecting the iPad Mini to be priced lower than its announced price tag of $329.
Bill Kreher, senior technology analyst at Edward Jones, said that investors "had hoped Apple would step on the throats of Amazon and Google with its pricing." Instead, he feels that Apple will be relying on its brand power once again to main margins.
Other analysts have even said the high price may allow competitors to sneak in lower priced alternatives. Google will be holding an announcement next week in which they are expected to announce a 10-inch tablet with Samsung. The tablet, if priced at $300, could be devastating to Apple's continued success in the holiday season.
For comparison's sake, Google's share price has been up by about three points today for an individual share price of $681.
Apple's earnings report will be going out Thursday so we'll know then how successful Apple has been in the third quarter. We'll also get our first look at how successful the iPhone 5 has been since its explosive launch.