Apple shares slide on iPhone problems

By Agence France-Presse
Tuesday, July 13, 2010 12:43 EDT
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NEW YORK — Apple shares were down sharply on Tuesday after Consumer Reports panned the new iPhone because of reception problems and rumors swirled about a possible recall.

Shares in the California gadget maker were trading 3.13 percent lower at 249.22 dollars at noon (1600 GMT) on Wall Street.

Apple’s slide came a day after Consumer Reports, the influential magazine for product reviews, gave the iPhone 4 the thumb’s down because of signal loss problems it said were caused by a design flaw.

Citi analyst Richard Gardner said conjecture about a recall was one of the factors sending Apple shares lower but dismissed it as unlikely.

“We consider the probability of a recall to be very low given our view that the issue in question is not serious enough to warrant a recall,” Gardner said.

Jeffries analyst Art Hogan said meanwhile that the release of the iPhone 4 is “the first time we’ve seen Apple stumble” but it was probably just a “bump in the road” for the maker of the Macintosh computer, iPod, iPhone and iPad.

Agence France-Presse
Agence France-Presse
AFP journalists cover wars, conflicts, politics, science, health, the environment, technology, fashion, entertainment, the offbeat, sports and a whole lot more in text, photographs, video, graphics and online.
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