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New iPad Lifts Shares of Everything—Except Apple

Apple CEO Tim Cook speaks during an Apple product launch event at Yerba Buena Center for the Arts.
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Apple CEO Tim Cook speaks during an Apple product launch event at Yerba Buena Center for the Arts.

Shares of cellular carriers and chip suppliers rose following Apple's announcement of a new iPad, which sports 4G LTE connectivity, a mega-high resolution display and a camera with more megapixels.

Oddly though, shares of Apple , the company behind it all, were little changed.

AT&T and Verizon both rose after they were named the official carriers of the device deploying that faster wireless network. The top model—a 64 GB model with 4G and Wi-Fi capability—will retail for $829. The Wi-Fi only, 16GB model will sell for $499.

“AT&T and Verizon are probably the biggest beneficiaries that I can see as iPad buyers are early adopters and are willing to spend $800 for the high-end device,” said Dan Nathan, author of the RiskReversal.com, a stock and options research blog.

“4G data usage should explode and as an added bonus, both stocks are defensive with massive dividend yields.”

Shares of Qualcomm, Texas Instruments, Broadcom and NXP Semiconductors all climbed following the iPad unveiling, which began at 1pm ET. These chipmakers are listed as official suppliers to Apple on the company’s web site, yet the tight-lipped company did not confirm that these companies’ parts were in the new device. Investors bid the stocks up anyway.

Apple shares, however, fell following the announcement and managed just a small gain at the close.

Investors had high expectations going into this event and may have been disappointed that the big selling point of the new iPad was its new screen and wireless network, but not a bigger integration of the Siri voice technology or some of the other grandiose expectations.

Some analysts were also expecting a bolder Apple TV to be announced, but instead the company introduced a similar small black box with only minor improvements over the original device.

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Even competitors did better than Apple as investors in those stocks gave a sigh of relief that the 3rd version of the tablet wasn’t more awe-inspiring. Shares of Kindle-maker Amazon rose and stock in Google , whose Android software runs on a bevy of competing tablets, also increased.

To be sure, Apple shares are up 30 percent in 2012 and have more than doubled since the first iPad was released in April of 2010. Therefore, many traders said the decline in Apple was just profit taking and not any actual disappointment in the new products.

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