Apple's share price tumbles 5.4% as its new iPhone models disappoint the market
On Tuesday, Apple released its newest offering in its iPhone range. But the market was disappointed with the new additions. Yesterday, Apple's share price fell hard. Let's take a closer look at why the market is so disappointed with Apple's new phones…
The price of Apple’s share fell over 5%, reports the BBC
. Investors are concerned that Apple’s new offerings are not going to “help it increase its share in emerging markets”.
Apple took a different approach this year. Instead of launching just one new iPhone, the company “unveiled two new models,” report BDLive
. The iPhone 5C is its “lower cost” option, which comes in a range of “five different colours”.
The iPhone 5S, the more expensive option, comes with a quicker processer, a superior camera and “fingerprint security features,” adds BDLive
Has Apple missed the cheaper end of the market boat?
After revealing its new models, investors are concerned that Apple missed the boat to “introduce a low end smartphone to drive sales in Asia,” reports Fin24
. The Asian market is dominated by Samsung and Chinese brand Huawei. These brands have a “wide lead over Apple”.
Janney Montgomery Scott’s chief investment strategist, Mark Luschini, says that investors think that “Apple’s price point didn’t go low enough to attract a new market,” says the BBC
. He added that Apple does have the “same range in price” that its competitors have.
And it wasn’t just the low end model that disappointed.
The high end model also raised concerns among investors, says Fin24
. It has “revived fears that Apple’s most innovative days” may be over.
But in spite of yesterday’s slump in Apple’s share price, the share is still “up 18% since the start of July,” adds Fin24
So time will tell how the market receives the new models, especially in the crucial Asian market.