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Apple Shares Fall 4% Upon Consumer Report’s iPhone 4 Non-Recommendation

Apple shares are at stake as the iPhone 4 reception issue gains momentum among news outlets and various tech blogs. As the public demands answers, Apple dropped 4% from their 50-day average price of $256.26 to $246.43. Although Apple did recover a bit at $250 as the Nasdaq gained 1.7 percent.

Reuters writes,

JP Morgan warned that reports of wireless reception problems on the smartphone, which competes with Research in Motion's Blackberry and Palm's Pre, may eventually affect demand.

"Consumer Reports is a well-respected product reviewer, and the report should turn up the heat on Apple," analyst Mark Moskowitz said in a client note. "Concerns around iPhone 4 reception do not appear to be impacting demand, but we think there are risks when a well-respected product rating agency such as Consumer Reports issues an unfavorable report.

"Apple shares are down on concerns about a possible defect with the new iPhone 4. Worries that iPhone 4 might be a lemon is weighing on their shares," said Frederic Ruffy, options strategists at Web information site WhatsTrading.com.

While some analysts argue whether 'a bumper' could save shares, Apple needs to save face somehow.

[via Reuters]

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