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Some analysts had been saying that Apple had failed to cut down prices enough to create an impact in emerging markets or with budget-conscious customers such as its target China. Moreover, it did little to indicate that it has regained its lead in innovation.
According to a report, shares dip at 5.4 percent and ended at $467.71 in New York. This happened the day after the Cupertino-based company presented the two new iPhones as just part of its effort to reclaim its strong position in the smartphone industry.
While it is true that the new iPhone 5C is currently offered to U.S-based customers at $99 when tied up with a two-year carrier contract, the unsubsidized counterpart retails at $549 in the U.S and $700 in China.
Analysts from the research firm identified as Trefis told AFP that the iPhone launch was a dampener of the expected cheaper-priced iPhone that turned out to be selling at $550. They even added that the company has failed to introduce any new products such as an iWatch or an iTV. They have expressed disappointment towards Apple’s decision to hold on to its reputation of being a premium priced smartphone vendor.
Credit Suisse analyst Kulbinder Garcha also told AFP that the newly launched high-end iPhone 5S is lacking real innovation and that the cheaper version may affect sales its sales. Though the iPhone 5S features a new apps processor, enhanced camera functionality, and a totally new motion sensor functionality, these are not really game changers. They are more like evolutionary and not revolutionary changes.
In the meantime, Apple will start taking orders on Friday will start selling on Sept. 20 in the U.S, Singapore, Japan, Germany, France, China, Britain, and Australia. Its executives have argued that the iPhone 5C is really an impressive device despite its marked down cost. The 5S, on the other hand, will be the gold standard in smartphones.
