The high-flying stock of Apple has come down to earth since the release of the iPhone 4 and the subsequent negative publicity surrounding its antenna problems. But it appears Apple customers don't share the concerns of Wall Street.
Apple shares were selling at $270 per share on June 24, the day the iPhone was released. Now the stock is down to $250, around an 8% drop. While this sounds like bad news for Apple, it may not be.
Demand for the new iPhone remains strong, with supplies at retail stores relatively low. People have not been scared away by the Consumer Reports verdict that it "can't recommend" the phone. Analysts polled by The Wall Street Journal said the return rate of the iPhone 4 is the same as other phones, despite the widely publicized antenna problem.
Apple claims a bumper case solves the reception issue. Analysts say if Apple gave a free bumper case to every iPhone buyer, it would cost the company an estimated $1 to $5 per customer, putting a 1% dent in its annual operating profit.
Despite the problems, analysts’ outlook for iPhone sales remain strong and unchanged at 35 to 36 million units for the year.
The falling stock price could claim one casualty -- Steve Jobs' massive ego. In May, Apple overtook Microsoft as the world's highest valued tech company for the first time. With the stock price falling, Apple could lose that distinction and fall behind arch enemy Microsoft yet again.