Press Esc to close
Monday 15 September 2014
News updated at 3:31 AM IST
Weather
Max: 29°C
Min : 20.6°C
In Bangalore
Sunny day

New iPhones fail to impress markets, analysts

New York, Sep 12, 2013, (AFP):
Reuters Image

 Apple's launch of two new iPhones raised fresh doubts about its strategy to expand its smartphone market share, prompting a slide in the company's shares and harsh analyst comments.

Some analysts said yesterday Apple had failed to slash prices enough to make an impact in key emerging markets or with budget-conscious buyers, and did little to show it has regained its edge in innovation.

Shares slid 5.4 per cent to end at USD 467.71 in New York, a day after the technology giant presented the two new iPhones as part of an effort to regain momentum in the smartphone market.

While the new iPhone 5C is being offered to US customers at USD 99 with a subsidised carrier contract, the unsubsidised price will be USD 549 in the United States, and more than USD 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 USD 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.

Jefferies analyst Peter Misek said the new devices were "lovely phones" but that the launch "still leaves Apple with a product gap in the low-end."

Walter Piecyk at BTIG Research said Apple is not doing enough to target the customers buying phones without a carrier subsidy, which is the norm in many places around the world.

"The pricing on the iPhone 5C is simply not low enough to adequately address the significant global growth opportunity that we believe exists with unsubsidised prepaid customers that have not yet bought a smartphone," Piecyk said in a note to clients.

Go to Top

Photo Gallery
An aerial view showing the flooded outskirts of Srinagar...

An aerial view showing the flooded outskirts of Srinagar...

Participants hurl tomatoes in front of the Royal Palace, Amsterdam...

Participants hurl tomatoes in front of the Royal Palace, Amsterdam...

Parineeti Chopra and Aditya Roy Kapur at Fatehpur Sikri...

Parineeti Chopra and Aditya Roy Kapur at Fatehpur Sikri...

Indian youth participate in a ‘Mud Run in Hyderabad...

Indian youth participate in a ‘Mud Run in Hyderabad...

India's Somdev Devvarman celebrates with team mates after winning against Lajovic...

India's Somdev Devvarman celebrates with team mates after winning against Lajovic...

An aerial view shows a partially submerged house in flooded fields on the outskirts of Srinagar...

An aerial view shows a partially submerged house in flooded fields on the outskirts of Srinagar...

India's Yuki Bhambri in action against Serbia's Filip Krajinovic in the singles match...

India's Yuki Bhambri in action against Serbia's Filip Krajinovic in the singles match...

Army personnel near a chopper for rescue and relief operation in Srinagar...

Army personnel near a chopper for rescue and relief operation in Srinagar...

An IAF Air warrior lending an helping hand by carrying a 10 day old baby...

An IAF Air warrior lending an helping hand by carrying a 10 day old baby...

India's Somdev Devvarman congratulated by teammates Leander Paes as Rohan Bopanna...

India's Somdev Devvarman congratulated by teammates Leander Paes as Rohan Bopanna...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523