After Bendgate, Apple Now Faces Meltgate – Forbes

People wait in line to buy new iPhone models at a telecom shop in Seoul on October 21, 2016. Apple released for sale its new iPhone 7 and 7 Plus in South Korea on October 21. / AFP / JUNG YEON-JE (Photo credit should read JUNG YEON-JE/AFP/Getty Images)

People wait in line to buy new iPhone models at a telecom shop in Seoul on October 21, 2016. (JUNG YEON-JE/AFP/Getty Images)

This morning in pre-market trading, Apple shares started suddenly diving for no apparent reason and, at one point, got as low as $134 and change per share.

After a bit of digging, the issue turns out to be a video of an iPhone 7 (going viral maybe?) apparently starting to smoke and then catching fire.

Only 58K shares of Apple have trade in the pre-market, but shares are down about $1.55 per share at the time of this writing.

This is not the first time videos have emerged about iPhones catching fire and probably will not be the last, given the viral world we live in and the attention-seekers that run rampant among of us.

Remember the bendgate issue, where a muscleman almost had a coronary trying to bend his iPhone on video?

Watch on Forbes: 

Although, in this particular issue, apparently Apple has acknowledged to Mashable that they are aware of the incident and are looking into it.

High capacity lithium batteries (used in smartphones) have been prone to catching fire if they have been damaged and, more than likely, that is exactly what has happened in this case.

The batteries were probably damaged and thus malfunctioned and caught fire.

More than likely, this meltgate issue with the iPhone 7 will turn out to be much ado about nothing, just like the bendgate and others have.

The timing of the video surfacing is also interesting, isn’t it?

Yesterday, for the first time in a while, we saw a risk-off in techland companies, which is more than likely going to get exacerbated this morning.

At the time of this writing, shares of Apple are trading at $135.02/$135.14 in very early pre-market activity on about 58K shares traded.

Opportunity knocking, maybe?

Although, some unsuspecting shareholders are definitely getting spooked out of their shares this morning thanks to the wild, wild West and free-for-all atmosphere that typifies the pre-market trading environment.

Remember, this too shall pass. It always does.

(Long aapl, long and short options)

Follow me on twitter @jsomaney, find my other Forbes posts & articles from other platforms at where you can get my real-time opinion on the stock markets live daily.


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