Fake iPhone report costs Apple $4 billion

By on May 17, 2007, 10:22 AM
Apple shareholders were not happy yesterday after technology blog Engadget posted what they thought to be trustworthy information stating the iPhone would be delayed until October and the release of Mac OS Leopard was re-scheduled to January 2008. The source was allegedly insider information based on a fake internal memo from Apple that read:

Apple issued a press release today announcing that iPhone which was scheduled to ship in June, has been moved to October and the release date for Mac OS X Leopard has been moved to January next year.
It didn’t take more than 15 minutes before people were selling their Apple stock, which dipped 3%. Apple’s stock was down from $108.48 a share to $103.42 sinking Apple's market capitalization by $4 billion. Apple quickly dispatched a memo reconfirming that the iPhone and Mac OS Leopard are on track for a June and October release, respectively.

Aware of the mistake, Engadget updated their story and Apple’s stock quickly rebounded, however it still closed the day down at $107.34. This is a true example of how influential some blogs have become and the responsibility that comes with that credibility. Gawker Media's Gizmodo, Engadget’s main competitor, had some thoughts on this matter too.




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