iPad 2's New Smart Cover Can't Protect ZAGG

For techies everywhere, yesterday's unveiling of Apple's AAPL iPad 2 was a thrilling event. The thinner body, the faster processors and the front-facing camera all wowed the crowd. However, the most disruptive feature to the iPad-accessory industry that has evolved during the past year may have been the Smart Cover -- a magnetically integrated protective cover that doubles as a stand. To see just how disruptive this new feature is, look no further than ZAGG ZAGG. ZAGG manufactures protective cases, skins and screen protectors -- like the invisibleSHIELD -- for iPads, iPhones and other portable electronic devices. Apparently, ZAGG investors had been anticipating a new wave of sales for the company's products once the iPad 2 hit store shelves. As soon as Steve Jobs announced that Apple had developed the Smart Cover, ZAGG's stock price dropped nearly 24%, from just above $9 to just above $7 per share. Continue reading the article.