Apple (AAPL) a Short?

The stock failed to make a new high on the iPhone 2.0 release- expectations were too high. Expectations, and how they are met, is everything in the market.

Also, RIMM's perceived disappointment will weight down AAPL.

Earnings wise, Mac sales are the bread and butter but AAPL also trades off of the growth of iPhones as a proxy for future earnings. Now, all my research shows that the iPhone is in HUGE demand over seas but there seems to be a slow down in the U.S. for all cell-phone providers. AAPL is usually price for perfection.

Evidence

Palm shares slump as loss, sales disappoint

12:22p ET June 27, 2008 (MarketWatch)

SAN FRANCISCO (MarketWatch) -- Palm Inc. shares fell as much as 11% in afternoon trading Friday after the company reported a fourth-quarter loss and a drop in sales as its popular Centro smart phone was unable to make up for declines in other areas.

Palm's gross margin fell to 25% in the fourth quarter, compared with 38% in the same period last year, a sign that Citigroup analyst Jim Suva said "was sudden and is a source for increasing concern."

Friday's biggest gaining and declining stocks

10:43a ET June 27, 2008 (MarketWatch)
SAN FRANCISCO (MarketWatch) - Shares of the following companies are among those making notable moves on the U.S. stock market Friday.

SONY Ericsson, the mobile-phone making venture of Sony and Ericsson , warned that its second-quarter pretax profit will be "about break even" on falling gross margins, due to moderating demand for mid-to-high end mobile phones and a delay in shipping new products.

Now Palm not making the numbers, can easily be passed as Palm's problem. Ericsson, is a little iffy. RIMM is a major disappointment. I do believe that many RIMM customers are waiting for the Bold/Thunder, so this may be a short term blip, but worth mentioning.

On top of all this, there is much speculation about Steve Job's health. No Jobs= No Apple. They lack a succession plan.

I believe that AAPL can bounce back to about 175-180ish with the rest of this oversold market. But now, tech doesn't look like the immune behemoth it did just 2 days ago.

Current Price: 168.50