Plagued by update glitches and reports of brand new iPhone 6 Plus devices allegedly bending in customers pockets have cost Apple Inc. approximately $23 billion in stocks. Shares have fallen 3.8 percent for the technology giant after the company was forced to pull the first update for its new iOS 8 operating software earlier this week.
Users reported a loss of cellular service and the inability to make phone calls almost immediately after the update was released. The fingerprint reading system Touch ID also stopped working. Apple removed the update only hours after its release and has since issued a public apology.
The much-anticipated release of the new iPhone 6 and the larger 6 Plus hit record sales numbers over the weekend, with over 10 million sold in just three days. But Apple’s achievement has been tarnished by both the failed iOS update and the startling number of claims that the smartphone has bent in customer’s pockets.
Apple has stubbornly defended the structural integrity of the iPhone 6 and 6 Plus, saying that warping is extremely rare if the phone is subjected to normal use. It also confirmed that only nine customers have contacted the company with reports of bent phones since the release last Friday.
The company’s persistent defense has done nothing to help its market value however, with Apple stocks dropping to $97.87, falling below the important $100 share mark. The slump has had a dramatic effect throughout the technology market, with several companies echoing Apple’s sliding trend and Standard & Poor’s 500 Index (SPX) suffering its biggest fall since July, closing the day 1.6 percent lower.
Apple has by no means enjoyed a flawless reputation. Consumers are used to the company not always being first and the iPhone 6 Plus, the first smartphone Apple has launched with a larger screen despite several other products already on the market, is the perfect example. But the problems this week have raised formidable questions about the company’s standards of quality. With allegations of bending phones and connectivity issues right from the start, the general expectation that Apple products always work has come under fire.
Despite the iOS 8 bugs and bent iPhones that have cost Apple approximately $23 billion, the company’s stocks are still up this year by over 20 percent, leading the race ahead of Standard & Poor’s 500’s general gain of seven percent. But a market slump just days after a crucial new product release is a major blow for any company. The iPhone, Apple’s most widely recognized and critical product, accounts for over half its stock value. With such serious problems hovering over its new release, this drastic change in stocks comes as little surprise.
With Apple being the most valuable stock in the S&P 500 index this fall has sent a ripple of damage throughout the market. With the company’s immense market value, each dollar lost by the technology giant amounts to a 0.68 point decline across the board. With $23 billion lost in stocks thanks to the cost of the iOS 8 bug and the reports of bent phones, today’s three dollar drop for Apple has pulled the market down by two points, as well as affecting every other technology company that connects with iPhone.
By Mathew Channer