BALTIMORE ( Stockpickr) -- Today may be Friday the 13th, but Apple's (AAPL - Get Report) bad luck came on Wednesday, when shares dropped 5.4% on the heels of the firm's highly anticipated iPhone event. Apparently, the new iPhones were bad enough to erase $27.1 billion from Apple's market capitalization. Ouch.
Apple would literally have been better off buying Nokia (NOK - Get Report) and Blackberry (BBRY - Get Report), shutting down their businesses, giving away their patents, and burning their offices, than releasing the iPhone 5s and iPhone 5c.
It would have destroyed less shareholder value.
But that should be the first indication that Wall Street got Apple very wrong this week.Before we get any further, I want to make one thing clear: this isn't some "unbiased" article about Apple. I'm no journalist. In my day job, I'm an investment professional -- I pick stocks, and I've recently built a position in Apple. So yes, I'm talking my book right now. But that doesn't make what I'm about to say any less true. For most of this year, I've said that Apple looks cheap, but that I wouldn't touch it with a 10-foot pole. Apple's stock sucked. But that's changing, even in spite of Wednesday's selling. Dissecting the iPhone Event The second Apple's price started reacting to the firm's Tuesday event, it was clear that Wall Street got it all wrong. Every other year, Apple announces an all-new iPhone - and in between those years, Apple announces a faster, slightly upgraded "S" model. Last fall, Apple released the iPhone 5, so the announcement of the 5s wasn't a huge surprise. But the 5c was a departure from Apple's past strategy. Previously, Apple has always offered the older version of their phones for a $100 discount to the current iteration. That meant that the iPhone 5 was likely to go on offer for $99 with a 2-year contract when the iPhone 5s was announced. But the introduction of the 5c changed that, repackaging the iPhone 5 into colorful plastic cases with a few minor upgrades (a better front-facing camera and bigger battery, for example).