For Apple, the reality of new product releases rarely matches the hype.
While rumors swirled for months about smart watches, smart TVs, and other new hardware products, Apple revealed only software upgrades on Monday at its 2014 Worldwide Developers Conference (WWDC). Impressive software updates they were — with refreshed operating systems on Mac computers as well as iPhones and iPads — but investors were looking for more tangible products to sell.
There was a significant stock drop during Apple’s presentation, when shares fell $4.66 in just a few minutes, touching the day’s low of $623.21. That fall happened immediately after Apple executives wrapped up a section on the company’s new “HealthKit” app, which aggregates activity and other health data from the phone’s sensors and other connected wearable devices.
Wall Street may have hoped to see the company introduce its own smart watch, a potential new source of sales growth for a company whose massive revenues and profits are increasingly dominated by just one product — the iPhone.
Apple shares recovered from that specific drop, but ended the day down 0.69%, finishing nearly $5 off Friday’s close of $633.
In the last few weeks, Apple stock has reached heights not seen since October 2012. Shares will undergo a 7-to-1 split on Friday, begin adjusted trading in a week. The company also finally completed its $3 billion purchase of headphone maker Beats Electronic.
Read more WWDC coverage here.