Apple Stock Price Drop News: Celebrity Photo Hack & Samsung's Galaxy Note 4, Gear VR Headset Release at IFA 2014 Splits Investor Confidence
Apple is facing some stiff competition. On Wednesday, when Samsung unveiled its new smartphones at IFA 2014 in Berlin, Apple's stock fell by more than 4.0 percent, Financial Post reports.
At IFA, Samsung revealed its Galaxy Note Edge phone that has a side display for faster access to news, the flashlight, Twitter and various apps. It also unveiled its new Galaxy Note 4 phone as well as a virtual-reality headset for the phone. Named the Gear VR Innovator Edition, the headset can be used to play games and watch concerts.
Apple did not join in the IFA. Instead, the company will have its own event next Tuesday in its home turf of Cupertino, California. At the event, it is expected to unveil a larger iPhone and maybe its iWatch.
Apple's shares had just hit an all-time high of $103.74 on Tuesday. The following day, its stock dropped. It came at the same time that Apple announced that the theft of celebrities' private photos was not due to a security breach in Apple's iCloud system but rather caused by hackers that took usernames and passwords for the accounts. The hacking of female celebrities' accounts led to the publications of some nude photos.
Apple's stock closed at $98.94 on Wednesday after falling by $4.36. The drop shaved off $26.1 billion of its market value. The company got hurt by the perception of a lack of innovation and security. The drop was its worst since Jan. 28 of this year. On Thursday, after a brief rebound, shares trading continued its downward trend, which erased another $6 billion in value.
The latest devices from Samsung have many Apple investors worried. Samsung is being innovative and a risk-taker and it has paid off. The Gear VR is a result of its partnership with Facebook, which recently bought the Oculus VR.
Another thing affecting shares was the low sales of the 7.9-inch iPad Mini and iPhone 5C. Likewise, the rumor that iPhone 6 only has 1 GB of DRAM in its smaller variant compared to Android competitors with about 3 GB of DRAM as standard didn't help.
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