Apple Inc. (AAPL) #BendGate: iPhone 6 Plus Owners Beware

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September 24, 2014 2:27pm NASDAQ:QQQ NYSE:IYW

apple buzzApple Inc.’s impressive sales of the iPhone 6 and iPhone 6 Plus have set a new record and CEO Tim Cook said that the sales — more than 10 million — exceeded the company’s expectations. He said they could have sold

a lot more if they had more available in stock.

These sales were even more impressive given that the new phones are not yet available in China.

On Wednesday morning, people were still lining up to buy the new phones, with 150 people spotted in line before 8 a.m. outside Apple’s flagship New York City store.

#BendGate iPhone 6 Plus owners beware

While Apple Inc.’s (NASDAQ:AAPL) new iPhones sales broke records, rumors surfaced Tuesday that the 5.5-inch iPhone may be susceptible to bending. Reports started filtering in from users saying the smartphones bend because people are putting them in their pockets and then sit down. According to MacRumors, two of its commenters have reported bent iPhone 6 Plus phones after being stored inside their pockets. Hours after the MacRumors post went live, producers of the YouTube channel “Unbox Therapy” tested the iPhone 6 Plus to see if could actually bend.

The short answer is yes — when put through a stress test, the iPhone 6 Plus bent to the point that it looked as if it would snap in half.

MacRumors theorizes this “bending” effect could be the result of the phone’s size. Because it’s so large and thin, it’s susceptible to bending with your body as you move where smaller phones would just slide out of the way.

Almost Half of Apple Devices Now Using iOS 8

Yesterday, Apple said that 46 percent of its mobile devices are now using iOS 8, the new operating system that became available to download on Sept. 17. Almost all of the rest are using iOS 7, with only 5 percent of devices using operating systems older than that.

Analysts Give Thumbs Up to Apple Pay

Several industry analysts said that Apple Pay, the mobile payment system scheduled to launch next month, will be a hit with consumers. They believe that Apple’s system will have several advantages over the Google (NASDAQ: GOOG) Wallet, including being easier to use, providing greater privacy and security, and integrating with merchants’ apps.

One analyst is predicting that operating earnings will go up 0.4 percent for every 1 percent of global purchases that are made using Apple Pay. This could have a significant effect in raising AAPL’s stock price.

Apple Number One in Buying Back Shares

S&P announced yesterday that Apple bought back $5 billion of its shares in the second quarter of 2014, the largest buyback for any company for the quarter. This is in addition to the $18 billion it bought back in the first quarter of the year. Apple’s total buybacks for 2014 are likely to beat last year’s $26 billion.

Apple Denies Rumors About Music Service Beats

This week, Apple denied widely reported rumors that it was planning to close down Beats, its recently acquired music-streaming business.

iShares U.S. Technology ETF — IYW

With the launch of the new iPhones and the soon-to-be-released Apple Pay and Apple Watch, the company appears to be firing on all cylinders. The stock, however, is vulnerable to public tastes, which can be fickle. To invest in AAPL while reducing your risk, consider an ETF such as IYW, which has 18.24 percent of its holdings in AAPL.

For the week from close-of-market Tuesday, Sept. 16, through Tuesday, Sept. 23, AAPL rose 1.76 percent, beating the market by a few percentage points. During that time period, the overall market declined — the Dow falling 0.44 percent, NASDAQ falling 0.97 percent, and the S&P 500 falling 0.81 percent.

By Diana Primavera, ETF Daily News

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