Shares of AAPL Plummet on iPhone 5C Pricing Disappointment
Although shares of Apple tend to dip around the time of a new iPhone announcement, today's sell-off feels uglier than usual.
Despite ample hype leading up to Tuesday's media event in Cupertino, Apple appears to have disappointed investors and traders again, but primarily with regard to one issue - the pricing of Apple's new iPhone 5C.
Expected to be the low-end, entry-level iPhone model capable of giving Apple a much-needed edge in emerging mobile markets around the world, the iPhone 5C doesn't necessarily come with a bargain price tag.
Many Wall Street watchers were hoping for an iPhone 5C price of around $400 without a contract subsidy. But that's not what they got yesterday. The iPhone 5C starts at $549 (although it's just $99 with a two year contract).
"Bank of America-Merrill Lynch downgraded Apple to 'neutral' from 'buy,'" ABC News reported this morning. "Similar actions were taken by analysts for Credit Suisse, Piper Jaffray and UBS."
Wall Street's reaction to Apple's iPhone 5C pricing was no less brutal. As of early afternoon today, shares of Apple were down nearly 6% - a whopping $30 per share.
Source: ABC News