We just reported Apple Inc. (NASDAQ:AAPL) launched its brand new, rumor-ridden, iPad mini device. It looks like shareholders are not too pumped about the smaller version. Apple Inc. (NASDAQ:AAPL) stock dove down from $630 to $615, close to 2 pm EST, just as the device was being announced in the San Jose, Calif event. Earlier in the day, the stock was looking better in anticipation of the new product launch. On the previous trading day Apple Inc. (NASDAQ:AAPL) closed at 634.41. Today the highest peak achieved was $633. 90.
The plummeting stock price is not necessarily a bad omen for the revenue generating capacity of iPad mini. Apple Inc. (NASDAQ:AAPL)'s stock has been moving up and down over the past few weeks. It closed last week at around $612 and had touched the 650s in trading on Wednesday of the same week.
Apple Inc. (NASDAQ:AAPL) received a truckload of positive and brilliantly optimistic reviews from analysts, as it geared up for the release of its flagship product, iPhone 5, a couple of months back. Predictions of the AAPL stock breaking records were given by almost every analysts' firms and then the unexpected happened. Apple broke the record and went above $700, but then just slid straight down after too many flaws were reported in its new Maps application that was pitched to compete with Google (NASDAQ: GOOG) Maps.
The new iPad's claim to fame could not be as easy as was anticipated before Apple's underperformance on the stock market. The new device might not be hindered by the Maps problem, but the competition from low-priced tablets is rigorous. Google's Nexus 7 tablet is selling at $200, which is still visibly lower than the announced price of $329 for iPad mini.
Gene Munster's prediction of Apple Inc. (NASDAQ:AAPL) touching $1000 may not be realized soon, but then tech stocks are never among the safe and predictable ones. Lately, Apple Inc. (NASDAQ:AAPL)'s arch nemesis, Google Inc (NASDAQ:GOOG), was beleaguered by similar problems when it reported struggling advertising revenue.