Apple Shares Plunge pre-MacWorld


CEO Steve Jobs not presenting his keynote speech, and news that Apple won’t be exhibiting at the MacWorld expo – or any other “traditional” trade show thereafter – seems to have sunk Apple’s share prices. The company’s earnings are also down 1% compared to last year this time, in what appears to be a growing trend over the years during this season. Analysts attribute this to the premium consumers must pay for an Apple product, but I think this strange in recent times since Apple now has a more diverse range of products  - meaning a greater chance at a larger profit intake.

The company should be riding on a wave of success, after the launch of their new revolutionary notebooks, and funky iPods. However, it seems that the MacWorld debacle is casting a dark cloud over the Cupertino computer maker.

Apple is said to have dropped nearly 7% in the wake of this news. Does this mean that they may be pressured into returning to “traditional” trade shows after MacWorld ‘09?

I don’t think so.

They said it themselves, and we can also see it ourselves; the company has other more powerful means of keeping connected with its customers: it has a powerful, user-friendly website that is frequently updated, it has the iTunes Store, and it as a legion of devout fans that blog every hour, on the hour, about the company. And they also have their own “special events”, like the recent notebook and iPod ones.

I think Apple just wants to have more control over the way in which they deliver new products, and this is why they made their decision.

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