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Chris works from BRW's Sydney newsroom. He has previously written and edited in print and online for titles including The Australian Financial Review and The Australian.

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Apple shares caned as Wall Street underwhelmed by new iPhones

Published 12 September 2013 11:25, Updated 13 September 2013 10:27

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Apple shares caned as Wall Street underwhelmed by new iPhones

Apple’s shares dropped more than 5 per cent on the NASDAQ overnight after its updated range of iPhones earned a tepid response from analysts who remain deeply concerned the company has lost its way on innovation.

Apple’s shares fell 5.44 per cent to close at $US467.71 on Wednesday.

Analyst concerns included fears that the new colourful iPhone 5C isn’t cheap enough to make a dent in Asian growth markets.

“It doesn’t have the same range in price that Apple’s competitors have,” Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, told Reuters.

Prior to the announcement of the new iPhones, there had been some expectation that a new colourful, which had been telegraphed well ahead of the launch, would be a low-cost version of the iPhone that would help Apple take the smartphone fight to the likes of rivals Samsung and HTC.

Apple’s new iPhone 5S, meanwhile lacked any features ground-breaking enough to convince either analysts or consumers that the company has pulled itself out of the innovation slump that seems to have hit it in the wake of the death of founder Steve Jobs.

“This was less than expected from a company that has a reputation for surprising with a killer product or strategy,” Luschini said.

Apple has maintained premium pricing for the new models, with the 5S priced between $869 and $999 in Australia and the plastic-cased 5C ranging between $739 and $869.

In comparison, Samsung’s popular Galaxy s4, which has a larger 5-inch screen, retails for $749 in Australia.

The new iPhones will be available in Australia from September 20.

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