iPhone price cut sends Apple shares falling

Link: Apple Stock Falls After iPhone Price Cut

There’s been a bit of a backlash since Apple decided to cut $200 off the price of an iPhone – resulting in an open letter from CEO Steve Jobs offering early adopters $100 of Apple Store credit for paying over the odds for the device. However, even that didn’t go down too well on Wall Street.

Apple Inc.’s price cut of its iPhone and the new lineup of iPod players are expected to ring in healthy holiday sales, but Wall Street investors accustomed to Apple’s meaty profit margins appear a bit disappointed.

Apple stock dropped $1.43, or 1.1 percent, to $135.25, in Thursday morning trading, but it was still up 2 percent over four weeks ago. On Wednesday, after the price cut was announced, shares had fallen 5 percent.