Having managed Nasdaq.com and observed the market daily since 2001, I’m always in awe of how much interest Apple’s (AAPL) product announcements and releases generate from the retail investor community. I thought it would be instructive to take a look at what has happened historically to Apple share price following a major product release. Of course, the past is not a predictor of the future but it does give one perspective.
Below I have included a chart that highlights seven major Apple product launches and their corresponding closing price and price change on the day of release. Starting on the left and moving through time, we show the iPhone, iPhone 3G, iPhone 3GS, iPad 1, iPhone 4, iPad 2, iPhone 4s. As the chart demonstrates, on five of the seven days of major product releases, Apple moved higher by more than 1.07%. On the day of the iPhone 4S release, the stock rose 3.32%. Obviously, the general trendline for the stock has been up since the release of the iPhone 3G.
Apple announced that pre-orders for the iPhone 5 hit two million in 24 hours, which is substantially higher than its previous record of one million in a day for the iPhone 4. As far as features, the Apple 5.0 is lighter than its predecessors with a taller screen. The screen now boasts 326ppi and a resolution of 1136x640 which means simply that you can see more. There are improvements to the performance such as image speed and new features for the camera. iOS6 comes standard with the phone.
(Click chart for larger image)