Apple Share Price: New iPhones Unveiled

on Sep 11, 2013
Listen, Wednesday, September 11: Apple Inc (NASDAQ:AAPL) yesterday unveiled two new iPhones – a high-end handset and a cheaper plastic model aimed at emerging markets. The flagship model, the iPhone 5S, will come in three colours and with a fingerprint scanner, while the cheaper version, the iPhone 5C, will come in five hues. The iPhone 5C will start in the US at $99 with a two-year contract, or $549 without.

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The unveiling of the new smartphones failed to boost Apple’s share price, with analysts citing the lack of surprise at the event, given the numerous leaks in the past few weeks that had prepared the public for the announcements. In yesterday’s trading Apple shares dropped 2.28 percent to $494.64 in New York. Over the past month Apple’s shares have gained about nine percent.

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Apple Share Price: Investors Bullish ahead of September 10 Event Apple Share Price Climbs Ahead of Double iPhone Launch

**New iPhones**
The iPhone 5S has a number of improvements compared with Apple’s previous flagship model, the iPhone 5, with the biggest amongst them being the new Apple A7 processor that has twice the number of transistors compared with the A6. The new flagship phone’s processor is two times faster than the one use by iPhone 5, Apple said. It also features a fingerprint scanner that allows users to unlock the phone with a touch. The model will come in three colours – silver, grey and gold and will cost $199 to $399 with a contract.

The 5C sports the same dual core Apple A6 processor used in the iPhone 5. It will be dressed in five hues – blue, green, pink, yellow and white – and will go on sale online on Friday. The high-end version will be available on September 20. For the first time it will sell in China at the same time as the US, which is expected to severely curtail the underground market for smuggled phones in the Asian country.

**Still pricey?**
!m[Tech Giant’s Stock Dips on Lack of Surprise at Introduction ](/uploads/story/5395/thumbs/pic1_inline.jpg)
Many analysts and experts within the industry have called for Apple to release a cheaper version of its prized smartphone to achieve better market penetration in emerging markets such as China, dominated by cheaper smartphones from rivals such as Samsung Electronics and Lenovo. Rumours about the upcoming 5C had fuelled hopes that Apple had listened to those calls, but the introduction of the new phone disappointed those who had been expecting a more aggressive price cut. An unlocked version of the 5C will sell for 4,488 yuan ($730) and above in China, more than the average urban resident earns in a month.

“It means Apple will hold on to margins but clearly they are not going after the very low-end of the market, which will disappoint some investors,” said Shannon Cross of Cross Research, as quoted by the Reuters.
“This is their first foray into multiple colours and the plastic back. Keep in mind by next year they would have probably have discounted this down, so I think there’s still opportunity.”
While the reception of the iPhone 5C by Wall Street is generally positive, some investors warn that the cheaper version will reduce margins and potentially tarnish a brand that has always been linked to premium users.
**As of 9:30 BST buy Apple shares at $485.95**
**As of 9:30 BST sell Apple shares at $485.35**

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Apple Share Price: Investors Bullish ahead of September 10 Event Apple Share Price Climbs Ahead of Double iPhone Launch



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