iOS7 updates and the reveal of the iPhone 5C this week may have many Apple iPhone fans excited, but one major group was reported to be left feeling unimpressed and even anxious: Wall Street. According to the CS Monitor this Wednesday, Sept. 11, the iOS7 and iPhone 5C — which didn’t have as cheap a price as users may have expected — still left Apple shares down this Wednesday morning, and Wall Street allegedly “worried.”
The iOS7 system and the iPhone 5C discussed this Tuesday during Apple’s special iPhone event still resulted in Apple’s trading shares going down over 5.6 percent in early trading this Wednesday, falling in at $467.24. During Apple’s long-anticipated reveal, the technologically advanced iPhone 5S was introduced with a new fingerprint sensor/scanner including a less expensive (but arguably not “cheap”) 5C model that seemed to be intended for still-emerging markets.
Wall Street may have been a little anxious, goes on the report, as it worries the company may be a share loser in the end if it does not make a more substantial attempt to reach out to lower-end purchasers regarding the iOS7 and the 5C.
"...We worry that Apple's inability/unwillingness to come out with a low-priced offering for emerging markets nearly ensures that the company will continue to be an overall share loser in the smartphone market until it chooses to address the low end," Sanford C. Bernstein analysts said in a statement.
However, the analysts still said that Bernstein kept a hold on its overall “outperform” rating regarding Apple’s stock, adding that they knew the new iPhones, despite being touted across the Web, wouldn’t have any major impact on gross margins.
“Nomura Equity Research analyst Stuart Jeffrey, who recently raised his price target for Apple shares to $480 from $420, said that Apple may have ensured stable margins for the next couple of quarters by choosing to price the iPhone 5C at $99 with a contract and $549 without … Yet this wasn’t enough for BofA Merrill Lynch, Credit Suisse or UBS, all of which downgraded Apple's stock to ‘neutral,’” noted the press release.
"Rather than offer attractive pricing for consumers, and move the iPhone 5C into a new and growing price segment, Apple retained a premium pricing strategy in targeting the $400-800 smartphone segment," Credit Suisse analyst Kulbinder Garcha concluded. "This segment is not forecast to see meaningful growth long term. This decision, at the margin, is good for profitability but not growth."
The iOS7 and iPhone fingerprinting system seemed to make the biggest splash at yesterday’s event, though talk of hacking fears had some users understandably anxious until full details on the Apple 5S and its new fingerprint sensor are revealed when the new phones hit the U.S. market.