Why on earth did the Apple stock drop so much yesterday? Were folks out there expecting them to create a machine that would levitate?
The stock dropped [full disclosure: I own Apple stock] yesterday due to the price of the iPad mini. Certainly, no one expected the iPad mini to be priced at $199, but there was hope that it would be $249 or more likely $299. Although it's only a $30 difference, there's a huge psychological difference about $299 vs. $329. If Apple had priced the iPad mini $299 or lower, they could have nearly obliterated the low-end tablet market. But I imagine that a lot of people who were debating between the lower-priced devices (such as the Kindle Fire or Nexus 7) but waiting to see where the iPad mini would be priced, had their decisions made for them yesterday.
No doubt, with Christmas around the corner, the iPad mini will sell like gangbusters regardless, but a lot of people were hoping they'd be more aggressive when it came to pricing. Who knows what strategies circulate through the Apple halls in Cupertino though. Perhaps, they plan to drop it to $299 right after Christmas. However, I wouldn't hold my breath.