New iPhone's fail to impress markets: analysts

 




The unveiling of two new i Phones raised fresh doubts Wednesday about Apple's strategy to expand its smartphone market share, prompting a slide in the company's share price and harsh analyst comments.

Apple failed to slash prices enough to make an impact in key emerging markets a
with budget-conscious smartphone buyers, and did little to show it has regained its edge in innovation, analysts said.
Shares slid 5.9 % to $465.50 in midday trade 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 $99 with a subsidized carrier contract, the unsubsidized price will be $549 in the United States, and more than $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 $550 and did not introduce any new products such as an iTV or an iWatch."

Members of the media review the new iPhone 5c and 5s during a new product announcement at Apple headquarters in Cupertino, Calif. Photo: AP/Marcio Jose Sanchez

"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.
"The iPhone 5C is essentially a multi-colored, plastic iPhone 5 and could cannibalize higher end sales and account for over 50 % of unit mix over time bringing lower gross profit dollars."
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.





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