How Apple's iPhone Announcements Affect The Stock [Infographic]

By now the excitement, and for some people, frustration has died down since Apple’s iPhone announcement about the iPhone 5. Some people are still trying to analyze what this announcement did to Apple stock, and whether or not this iPhone will be yet another huge success for Apple. Personally, I think Apple’s track record and reputation for high quality products will ensure the iPhone 5 is another cash cow for this constant record-breaking company. Whether it will be as huge as everyone expects it to be, I don’t know. Some people have predicted that Apple could sell as many as 10 million iPhones in the first three weeks, but I find that to be a little too much. If Apple sold 5 million or more, it would still be a huge success to add to the books.

Just like with most stocks, the thing about Apple and their events is that the iPhone announcements alone aren’t the thing that make the stock go up or down, it’s the expectations and rumors. If we take a look at how the stock was affected by each iPhone announcement of each new tier product, we quickly see that the stock usually goes down the following couple of days. Why is that?

Well, it could be explained by the fact that the market is in “waiting-mode.” People want to see how well the new tier does and what the press says about it. When the new iPhone starts to sell, that’s when we see the real effects of the new tier product that the iPhone announcement was all about. It has happened over and over again, and it seems many times experts interpret Apple stock trends too quickly after each iPhone announcement.

We can see this clearly in a fresh infographic brought to us by Statista (design by Bumblecoon). It’s called Apple’s Stock Performance Surrounding iPhone Announcements, and it paints a clear picture of what happened after each iPhone announcement of a new tier iPhone. In all the cases, except the first version of the iPhone ever announced, Apple’s stock has performed poorly after the main iPhone announcement.

So what does that mean for the iPhone 5? Well, it will probably mean that Apple is going to have another cash cow at their disposal, and that we will see incremental upgrades for the coming iPhone 5s for at least a year or year and a half. I strongly doubt Apple will announce an iPhone 6 when it’s about time for them to treat the world with something new to keep the income flooding in. It’s also crystal clear that the trend is that Apple’s stock usually starts to go up again after about a month or two. So, before you sell your stock based on the reactions after the recent iPhone announcement, wait a bit and see what the market really thinks about the iPhone 5. The upgraded camera, processor and iOS 6 could be just what the new iPhone 5 needed to push it to the next level as far as software goes. We’ll have to wait and see so we know for sure what it can really do.