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The much anticipated launch of the software giant’s latest development managed an excellent start with pre-sales for the iPhone 6 numbering in the millions – but will this initial success be followed by a massive recall? Users are already reporting a troubling defect; some claim that after prolonged use the phone becomes distorted and in some cases has actually bent out of its original shape. Until Apple makes an official statement regarding these complaints it is difficult to say whether they are simply irritable customers who would like to see the company squirm, or whether there is a genuine defect that will prove to be costly for shareholders. If the latter is true, Apple and its investors may be facing the pricy reality of a recall; which – especially following a major new product launch – could dramatically affect stock values. This only goes to show exactly how unpredictable the stock market really is, and depicts the logic behind many companies’ seemingly over the top need for secrecy when it comes to new product launches, management turnover, or anything else that could possibly spook their investors. We have discussed this topic in class before as it related to Blackberry – the value of the struggling software company shot up following the rumour of a new product launch – and how even the slightest, most insubstantial factor can have a dramatic effect on the wellbeing of a company.

The iPhone 6 issues coupled with consumer dislike of the iOS 8 update caused Apple shares to drop 3.5%; erasing twenty billion dollars from the value of the company (http://www.businessinsider.com/apple-execs-sold-143-million-worth-of-stock-2014-9).