Apple Stock Tanks On Bogus Engadget Report

Apple's policy for secrecy is great for building up hype about products and making splashy announcements. However, secrecy does work both ways and the recent rumor is a fine example of how it can hurt Apple.

Yesterday, shares of Apple tanked 3% after Engadget published a report that the eagerly awaited iPhone was being delayed until October. Apparently, an e-mail was sent out to several news sources claiming to be an Apple official report on the iPhone delay.
"'We have it on authority that as of today, the iPhone launch is being pushed back from June to… October." Engadget says.

It didn't last long though and around 12:15 p.m. EDT, Engadget updated its story to say that Apple's public-relations folks said iPhone was still on track and that an internal memo to which Engadget was privy had been retracted. However, Apple spokeswoman Natalie Kerris said that "This communication is fake and did not come from Apple. Apple is on track to ship iPhone in late June and Mac OS X Leopard in October."
Other media outlets received the bogus mail, but most checked with Apple before publishing it.

For some, the iPhone delay scare was beneficial, as shares of Apple dipped as low as $103.42, in a nice artificial buying opportunity. But it did not last long and shares are now selling for $107.34.
While not particularly dramatic on Apple's stock, this incident does prove that Apple has a lot riding on the iPhone release and that if something does go wrong, or it does not meet people's expectations, the company could see a pretty nasty reaction. However, in light of Apple's practice of under-promising and over-delivering the iPhone could turn out to be more than people expect. If recent surveys are any indication, Apple will sell a lot of the little devices.