Apple's app sends shares of card makers tumbling

Associated Press
Apple CEO Tim Cook talks about the iPhone 4S during an announcement at Apple headquarters in Cupertino, Calif., Tuesday, Oct. 4, 2011.  (AP Photo/Paul Sakuma)
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Apple CEO Tim Cook talks about the iPhone 4S during an announcement at Apple headquarters in Cupertino, …

NEW YORK (AP) — Apple, which revealed a new app Tuesday that lets users create and mail greeting cards with their iPhones, might want to consider crafting its own condolence card for traditional greeting card companies.

A brief mention the $2.99 app that lets people design and send greeting cards through the postal service sent the stocks of greeting card companies tumbling.

Scott Forstall, Apple's senior vice president for iOS mobile software, released details of the app during an event at the company's Cupertino, Calif., headquarters as it also unveiled the latest version of the iPhone.

The announcement of the new technology, perhaps the perfect app for procrastinators, sent shares of American Greetings Corp., based in Cleveland, down more than 6 percent to close at $16.68.

Shutterfly Inc. fell more than 2 percent to close at $39.42. Shutterfly lets people print and share digital photos or make personalized greeting cards or photo books.

Apple Inc., which introduced the iPhone 4S Tuesday, also saw its stock fall because of rampant speculation that the company would release a more radical upgrade, an iPhone 5. Its stock fell more than 4 percent in afternoon trading before rebounding to close at $372.50, down 0.6 percent.

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