How iPhone rumors affect Apple's share price
It's an exciting time to be an Apple fan. Apple is rumored to be announcing a new iPhone in the coming weeks and the company's stock recently reached another all-time high. Those with an eye on Apple's financials might want to watch the company's stock closely in the next few weeks.
As pointed out by Philip Elmer-DeWitt of Apple 2.0, Apple's stock doesn't always follow the typical "buy the rumor, sell the news" cycle, in which a company's stock price rises on rumors and then falls when the product goes on sale. DeWitt points to a March report by Mashable's Matt Silverman that shows how each iPhone announcement influenced Apple's stock.
Not surprisingly, the biggest effect on Apple's stock was the original iPhone, which was a game-changer in the mobile phone market. Though the new iPhone may not be as revolutionary as the first iPhone, it's expected to be a big jump from the iPhone 4S. Will this improvement be enough to give Apple's stock another boost in the arm? We will have to wait and see what happens in the next few weeks.
