Apple Shares Surrender iPad Gains
Stock posts modest increase but suffers pre-market pullback on valuation concerns, Greek economy.
Shares of Apple were down sharply in late afternoon trading Tuesday, one day after posting a modest gain on news the company has sold more than one million iPads in the device’s first month on the market.
Apple shares were off 3.21%, to $257.79, with less than an hour until the closing bell.
Analysts cited concerns that the stock may be overvalued, as well as broader market fears that Greece’s economic woes could spread elsewhere, as the reasons for the selloff.
Apple CEO Steve Jobs on Monday said iPad sales were significantly outpacing those of another hot seller from Cupertino—the iPhone.
“One million iPads in 28 days—that’s less than half of the 74 days it took to achieve this milestone with iPhone,” said Jobs, in a statement.
Apple also revealed that iPad customers have downloaded more than 12 million apps from the App Store, and more than 1.5 million e-books from Apple’s new iBookstore.
Piper Jaffray analyst Gene Munster, meanwhile, estimated that Apple sold about 300,000 iPad 3Gs over the weekend.
The iPad 3G, which features cellular connectivity through AT&T as well as built-in WiFi support, hit stores on Friday. Jobs conceded the iPad craze is creating some logistical problems for Apple.
“Demand continues to exceed supply and we’re working hard to get this magical product into the hands of even more customers,” said Jobs. The wait time for those who order an iPad from the online Apple Store is five to seven days, according to a note on the store’s Web site.
For less patient shoppers, numerous eBay merchants claim to have iPads on hand and ready for sale—at prices well above Apple’s official list price.
Pricing for the Wi-Fi only version, which features 802.11 connectivity, starts at $499 for the 16GB model, $599 for the 32GB model, and $699 for the 64GB version. The Wi-Fi + 3G versions are priced higher. The 16GB model is $629, the 32GB model is $729, and the 64GB version is priced at $829.
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