Apple shares plummet on iPhone 4 signal woes

Dylan Bushell-Embling & Michael Carroll
15 Jul 2010
00:00
News

Apple stock has slumped after a damning report on the iPhone 4’s antenna problems sparked speculation the device could be recalled.

 

Shares in the company fell by up to 4.2% in a volatile day of trading Tuesday, after influential independent product reviewers Consumer Reports refused to recommend the iPhone 4 because of reception issues.

 

While the stock recovered slightlyyesterday, at its peak it was still nearly $2 off its closing price on Monday and over $6 off that trading day's peak.

 

The slide was caused by market fears of a product recall analysts told Reuters.

 

JP Morgan said the negative review from Consumer Reports could eventually have an impact on sales, regardless of whether the firm issued a recall or not.

 

However, Bob Egan, global head of research and chief analyst at the Tower Group, slammed Consumer Reports’ verdict on the iPhone 4, claiming its research was unscientific, CNET.com reports.

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