iPhone 3G Launch Fails To Rally Tech Sector As Dow Slips Below 11,000 - InformationWeek

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iPhone 3G Launch Fails To Rally Tech Sector As Dow Slips Below 11,000

In midday trading, Apple shares were off 1.3% to $174.74 on relatively light action, well off its 52-week high of $202.96.

Even the launch of the coveted iPhone 3G couldn't lift Apple's stock price Friday, as the computer maker's shares fell more than 1% amid market woes that pushed the Dow Jones Industrial Average below the 11,000 mark for the first time in two years.

In midday trading, Apple shares were off 1.3% to $174.74 on relatively light action. The stock remains well off its 52-week high of $202.96. AT&T, which provides network service for the iPhone, was faring only slightly better. The telecom giant's shares were down 0.34% to $32.65. Shares of Synchronoss, which handles iPhone network provisioning for AT&T, were up 0.88% to $9.19.

At midday, the Dow was off more than 1.8% to dip below 11,000. The Nasdaq index was down 1.59% to 2,221.

Other tech vendors did not escape the downturn, which was sparked by concerns over the solvency of government-backed mortgage makers Freddie Mac and Fannie Mae. Bellwether IBM slumped 1.34% to $121.53, and chipmaker Intel was down 0.82% to $20.44 while Google sank 2.13% to $529.06.

Yahoo, buoyed earlier in the week by renewed talk of a Microsoft merger, had fallen 2.72% by early afternoon to $22.86, while Microsoft itself was off 1.34% to $25.11.

Amid long lines at its stores, Apple on Friday formally launched the iPhone 3G, which features download speeds more than two times faster than the original edition and a modest $199 price tag for the 8 GB version.

Demand for the phones is such that one Nevada resident, through eBay, paid a man $1,200 to hold a place for him in the line outside Apple's Las Vegas store.

As of Friday afternoon, eBay listings showed dozens of iPhone 3Gs offered by sellers who were hawking the devices for more twice the original price.

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