• 16 May 2007 at 4:52 PM
  • Apple

Engadget Takes A Bite Out Of Apple

appleiphoneengadget.jpgApple shares took a nose dive earlier today on news it was about to announce delays for the release of both its new operating system and the iPhone. The only problem is that the story wasn’t true.
At eleven minutes to noon today Engadget, a popular tech blog, posted an item claiming that the iPhone, which is scheduled to be released in June, would be delayed until September. Shares of Apple promptly plummeted. Less than a half hour later, Engadget began to update the item. A representative of Apple denied the story, and Engadget labeled the delay a “false alarm.”
It seems that Engadget’s initial report was based on a email memo circulated within Apple. The email states that Apple had issued a press release announcing the delay. Commenters on the blog quickly noticed that Apple had not, in fact, issued a press release announcing a delay, raising suspicions that Engadget was a victim of a hoax. (Apple had filed an 8-K today disclosing changes in it’s employee stock option plan and making no mention of product delays.)
Shares of Apple traded heavily as word of the delay spread, at one point pushing the stock down 2.7%.
It’s still not clear how this story got started. Apple says that the email memo about the delay was a fake. Engadget, however, insists it came from a “trustworthy source” and was sent from Apple’s email server.
False alarm: iPhone NOT delayed until October, Leopard NOT delayed again until January [Engadget]

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Comments (3)

  1. Posted by Jim Cramer | May 16, 2007 at 8:38 PM

    If this was an honorable, “trustworthy source” who bought up discounted Apple shares after the little nose dive his fake leak caused, he will cut Engadget some kickbacks when he sells the stock tomorrow at truer market prices.

  2. Posted by Anonymous | May 16, 2007 at 10:10 PM

    Sounds like a strategy. Look out tips@dealbreaker.com, here I come.

  3. Posted by Andrew Coffey | May 17, 2007 at 3:28 AM

    Its like 1:30am at the bar on a Saturday Night for AAPL some might be looking to get laid, perhaps a fight will break out. Everyone for sure is drunk.