|Apple shares slide 5pc
Apple's launch of two new iPhones raised new doubts about its strategy to expand its smartphone market share, prompting a slide in the company's shares and harsh analyst comments.
Shares slid 5.4 percent to end at US$467.71 in New York, a day after Apple presented the two new iPhones.
While the new iPhone 5C is being offered to US customers at US$99 with a subsidized carrier contract, the unsubsidized price will be US$549 in the United States, and more than US$700 in China.
Analysts at the research firm Trefis said the iPhone launch “turned out to be a dampener of sorts, as the company priced what was expected to be a significantly cheaper iPhone at a hefty US$550 and did not introduce any new products such as an iTV or an iWatch.''
“So much for the low end,'' said Credit Suisse analyst Kulbinder Garcha in a research note.
“We remain disappointed with Apple's decision to remain a premium priced smartphone vendor.''
Garcha said that the new top-line iPhone 5S was “lacking real innovation'' and that the lower-cost version may hurt sales of the premium product.
“The iPhone 5S has a new apps processor, improved camera functionality and new motion sensor functionality. However, these are not game changers and are more evolutionary rather than revolutionary changes,'' the analyst said.
Apple said it will begin taking orders on Friday and on September 20 the two devices will go on sale in the United States, Australia, Britain, China, France, Germany, Japan and Singapore.