Its bizarre. I think the explanation doesnt work though. The market is imploding thanks to Citi and Merill. All the other stocks are in for the ride down. I am looking to add to my AAPL position. I think sanity will set in soon but that said the market is dripping blood and its nasty.

Recession, huh? Have you tried to get a parking spot at the mall lately? Looks about the same to me.

As for the keynote, what's he going to do? NOT announce new products? Yeah, share holders love that kind of thing.

The market hated Steve Jobs' speech because it expected too much. The key features of the speech were widely discussed in the days prior - yet when those same features were delivered, AAPL dips. That tells me the market got way ahead of itself prior to the speech (notwithstanding fairly gloomy trading conditions anyway).

And it seems to me that an $1800 super-thin notebook isn't aimed at the consumer who can't pay back his mortgage. Early-adopters, almost by definition, tend to be in the higher (disposable) income brackets, and to date at least, that end of the consumer market is looking relativel resilient.

What your write up seems to be missing is the new movie rental service. The go-with-what-you-know habits of the consumer favor iTunes in this emerging arena. The price drop on the AppleTV feels more like an incentive than a move of desperation. (Look back and note that many people said they would wait to purchase an Apple TV once it supported native HD content and true Dolby 5.1 audio).

As for the MacBook Air. It seems to be priced between the 2 existing lines (smart), and is cheaper than the Sony super-thins on which it is based (smarter).

As for "Gumby"'s comment: "Macs is for the..." If you are going to accuse Mac users of being feeble-minded idiots, please check your grammar and punctuation.

People who can't pay their mortgages are probably not the market the MBAir is aimed at anyway. With the $999 64GB SSD in it (making the device over $3k), it is definitely aimed at the people who CAN pay their mortgages.

One wonders how this guy is even a columnist on this subject -- poorly worded, and understood is what his write up seems to me -- or even worse it reads like a MSFT paid for article.

...Jobs introduced a myriad of new things today. Not to mention the iPhone has almost 20% of the smartphone market in only the first 90 days onsale, with figures through the holiday season expected to be as good or better.

The one feature I don't care for that was intro'd today is the $20 upgrade for iPod Touch users to get the new features the iPhone already has. The new Airport w/ 500gb HD is a great buy for the price (IMO), and the rentals will be something to see, depending on how fast the network works to send out the movies. Being able to get all the major studios on board for this was a real coup for Steve I think.

"Jobs also said the company would cut the price of the Apple TV product. Cutting the price, and presumably the margin, on a product no one wants will not add any money to the revenue line."

No one wanted a newton but 4+ million people like its older brother.... I see it as the more people with a Apple TV = more movies rented on Itunes = More money for apple. You make the money off the blades not the razor...

apple delivered more than what was widely expected. there are some exciting things here that investors will recognize as they reflect on them.

i would pin the selloff squarely on the typical short-term momentum-driven fund mgrs who dominate trading volume on wall street, and who love to buy the rumor and sell the news. certainly the author should look there first.

I think investors are a little premature to hate the MacBook Air. Having looked at the Air, its clear to me that the target market for the MacBook Air isn't American. Apple is making inroads to the foreign markets, particularly Asia. I've spent a year in both Tokyo and Hong Kong, and all I see are these Sony ultraportable notebooks like Jobs pointed out in his Keynote. Space is at a real premium, and everybody uses public transportation, so ultraportables are ideal. Of course some American consumers will buy the Air, but consumers in Asia are more accustomed to paying more for a lighter and more stylish notebook. It's an aggressive play from Apple, considering the fact that they have little presence in Asia. However, given the rabid response in China for the iPhone, I will bet on Apple making it work.

I don't know. I liked the speech. I already ordered the new MacBook because I needed a new laptop and I travel a lot for work. I can put windows on it an leave my bulky Dell at home. I can see renting movies through iTunes and watching them when I go on the road. The new iPhone software upgraded added some cool new features. And in two weeks I get a completely new UI and Feature Set for my AppleTV. The stock always climbs on speculation and tanks on the news.

Asking the question "who will pay 1800$ for the MacbookAir" doesnot make lots of sence ; think : "who payd 600 and 400$ for an iPhone? " Answer : Millions of people .....

I have a large stake in AAPL. The critics are right ... this will go the way of the cube ... brilliant design, ahead of it's time, too expensive, restrictive upgrade, under powered. Apple is shedding wire which is the future ... the next iteration will be the one to wait for ... Bravo on the movie renting! They should give away subsidized Apple TV and watch rentals rack up ...

Macs are NOT for Walmart shoppers! Some people cannot afford $1800 for a new computer, but the people who already own 2 or more Macs can! These are the Nordstrom shoppers and that's all I care about. AAPL stock is good. Look at their past history. If only you knew a year ago the stock was going up over 100%, then you, too could afford to buy a MacbookAir. Buying an Apple product is buying into the future. Their technology makes it possible to keep a computer for a long time unless you are always wanting the newest gadget; but, the older versions of the Mac are still far ahead of the PCs.

That explanation made a great deal sense to me. I own a hundred shares of AAPL stock, and I was thinking of selling it when it hit 200. However, if you look at the market it will bottom out eventually and steadily head back up. The Macbook Air is a kind of flawed concept, lacking features other super-slim notebooks have. $1800 is just buying the compartmentalized electronics, in time prices will decrease and design will increase. However, like the article states, an $1800 laptop lacking essential [and basic] components isn't going to do exceptionally well during a recession. I'll hold out for the "iPod effect" to kick back in.

Dont you think you would look better lipreading "is" rather than "arrrrre" as in braying ...

Macs is for the feeble minded mold licking idiots