The overall market did somewhat better. The Dow fell 0.23 percent during that time period, Nasdaq rose 0.39 percent, and the S&P 500 rose 0.13 percent.
There was no particular piece of bad news that caused Apple’s drop. In fact, most of the news this week was neutral or positive.
In good news for Apple, Morgan Stanley raised its price target for AAPL on Tuesday from $89 to $108 per share and reaffirmed its “Overweight” rating.
The analysts are looking beyond the expected release of the iWatch (which they don’t think will significantly increase earnings) to 2015, when they expect Apple will be releasing many new products for what Morgan Stanley is calling “iAnywhere.”
In an attempt to boost sales of the iPod, which have been falling as people increasingly use their phones and tablets for music storage, Apple announced today that it was reducing the price of three iPod Touch models and will be adding a rear-facing camera and more choices of colors to the lowest-price model, the 16GB.
That 16GB model’s price will be cut from $229 to $199, the 32GB from $299 to $249, and the 64GB from $399 to $299.
Apple’s competitors, of course, never rest. Google (NASDAQ: GOOG) is trying to create an entire ecosystem that will compete with Apple’s.
Yesterday, Google announced a new version of Android, which will include more privacy features; a new Android television service; new Android smartwatches; and software for cars.
Meanwhile, at Amazon (NASDAQ:AMZN), the new Amazon Fire Phone has been getting mixed reviews.
It doesn’t appear that it will become as much of a competitive threat to Apple’s iPhone as some people had anticipated before the Fire Phone was released.
Rumor of the week
This week’s big rumor is that the long-awaited iWatch will start to go into production in July and will go on sale by October.