Apple falls on disappointment in new handsets

Shares close at month low as analysts criticise price points, lack of innovation

Tags: Apple IncorporatedChinaHuawei Technologies CompanySamsung Electronics CompanyUSA
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Apple falls on disappointment in new handsets Apple CEO Tim Cook is unlikely to see the iPhone range gain ground in emerging markets at current price points, say analysts. (Getty Images)
By  Stephen McBride Published  September 12, 2013

Apple Inc shares dived 5.4% on the Nasdaq exchange yesterday to close at a month-low $467.71 after at least three brokerages downgraded their ratings on the stock amid disappointment in the newly launched iPhone handsets, Reuters reported.

GALLERY: iPhone 5S

GALLERY: iPhone 5C

ANALYSIS: Budget iPhone not budget enough

Analysts were underwhelmed by the lack of new features in the premium iPhone 5S and criticised the price of the iPhone 5C - intended as a budget model - as too high to compete in emerging markets.

Commentators considered the fingerprint scanning technology of the 5S as the only new feature of note and doubted it would be enough to attract consumers in the all-but-saturated premium smartphone segment.

"There was nothing transformational announced. It has the fingerprint scan and new colours, but bigger features, like different screen sizes, don't seem to be at the ready," said Mark Luschini, chief investment strategist at Philadelphia-based Janney Montgomery Scott.

"This was less than expected from a company that has a reputation for surprising with a killer product or strategy."

GALLERY: iPhone 5S

GALLERY: iPhone 5C

ANALYSIS: Budget iPhone not budget enough

The 5C model, while plastic, has a steel frame and much of the inner workings of the iPhone 5 and many features from the 5S, including the reworked iOS 7. Reuters reported that the 5C would sell for an unsubsidised price of $730 in China - around double the cost of mid-tier offerings from market rivals such as Huawei and Samsung, and more than the average monthly urban income in China. Low-end vendors such as Xiaomi have models that sell for as little as $100.

2015 days ago

Apple is just a HYPED UP for almost nothing. Their product range is very narrow and whatever they have has been GROUND to POWDER. They do not have the product range or innovation like Samsung or HTC etc

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