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Refurbished iPhones: Ut-oh for Apple (AAPL)?

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Aside from the recent pullback, the bulls have been having their way with Apple (NASDAQ: AAPL). But now there is pretty compelling evidence that all is not well with the iPhone.

You can now save $100 on an iPhone by snapping up a refurbished one on the company's website. So far iPhone sales have fallen well short of expectations, and there are two possible explanations for the refurbished models. It's possible that they were returned by speculators who were hoping to resell them on eBay but were disappointed when Apple had enough stock.

That may be part of it, but it seems likely that a lot of people are just unimpressed with the expensive new phone.

Kevin Kelly has written that Apple stock is priced for perfection. So far the iPhone, expected to be a major growth driver, has been performing far from perfectly. Will the stock follow the phone down into the "Returned due to poor performance -- Save 20%" bin?

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DJIA-14.2810,318.16
NASDAQ-10.782,146.04
S&P 500-3.521,091.38

Last updated: November 23, 2009: 04:47 AM

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