Apple Stock Tumbles After iPhone 5S Announcement

technology, apple, iphone, u.s., stocks, business

The iPhone 5S/C did not impress Wall Street
The iPhone 5S/C did not impress Wall Street

Apple had 5 in mind. iPhone 5S with a revolutionary 64-bit chip, and the iPhone 5C with varying colors made to tempt the eye and pocket. Millions of consumers disagreed and it seems so did Wall Street. When markets closed, Apple felt a sting of watching their shares drop 5 percent. This 5 wasn’t invited to the exclusive party. While the tech giant may be questioning why this is happening, experts are not. Speaking to a local markets analyst, who requested not to be named, he surmised that Apple did indeed disappoint. Instead of triggering a response in a saturated smartphone market, Apple fed into the already frustrated and limited premium market. In addition, the analyst remarked “they obviously paid no attention to public demand on specs. Rarely is a consumer delving for specifications about chips, they do care about specification of immediate visual and financial results.”

Many consumers presumed the iPhone 5C would be more affordable than its price. Certainly, the $99 is very attractive on a 2-year agreement, but reviewing the no contract price, it is $549.99 causing consumers to withdraw from the choice. The boosted iPhone 5S is a mere $100 more without a contract and many customers are disappointed in Apple for continuing basic increases with a hefty price-tag. Apple is not only losing interest in the American markets, but in Chinese markets as well.

The Chinese based Xiaomi Mi-3
The Chinese based Xiaomi Mi-3

The dip in Apple stocks isn’t that big of a surprise to consumers who are viewing the specs of the iPhone 5 versions. Just within the past few weeks, Apple was looking to woo Chinese buyers back into the iPhone game. Additionally, the great mind of Android, Hugo Barro recently left Google to partner with a quickly growing smartphone company called Xiaomi. The Chinese branded firm is not seeing Apple as a threat and earns considerable home field advantage. The company is making a splash, but one reason outweighs the others; price. The company is set to release a 5-inch smartphone called the Mi-3 running the Nvidia Tegra 4 chip, making it a considerably innovative gaming device. The price of the Mi-3? $330 unsubsidized (without a contract).

With a man like Barro at the wheel, Xiaomi only sees Apple has a fading blip on their radar. Technology is becoming more advanced, consumers know this. They demand it. What consumers don’t want is the overly priced end point, when they are aware companies like Apple are making over 50-percent ROI when the phone is purchased unlocked. The iPhone 5 cost roughly $197 in materials, sold without a contract consumers were forking over $549.99. Millions of people want the global use of their device or the advantage to move into into a prepaid plan, sighing as they hand over their credit card.

The Galaxy Mega impresses at 6.3-inch
The Galaxy Mega impresses  with a 6.3-inch display

Samsung released the motherload of mega displays with the Galaxy Mega. The phone boasts a 6.3-inch display, multitasking windows, Air View, a battery that can handle 18 hours of activity and an expandable memory up to 64GB. Without  a contract the phone is $479.99, $70 less than the iPhone 5C and with a much larger screen. Consumers have been clamoring Apple for a larger screen and the rumor mill exploded with a possible 6-inch screen. Perhaps, Apple is saving the best for last when it comes to the 2014 speculation of the iPhone 6. Regardless, speaking for today and the numbers, the market has spoken.

Apple was looking to create a splash and among the techie world, they did. The 64-bit chip, the fingerprint sensor and varying colors now available are bonus points for Apple. The iOS 7 is another step in the right direction for Apple, it seems everyday consumers were just not duly impressed. Instead of opting for the iPhone 5C, many consumers will hit the Apple online store for a free iPhone 4S and add a skin or fun case for color selection. Apple’s stock tumbled down to 5-percent after the iPhone 5 releases. Only next week will determine if that number climbs or if Apple will have to reconfigure their thought process to sway American markets away from Samsung, and Chinese markets from Xiaomi.

 

Angelina Bouc

Sources
Top 5 Facts of the iPhone 5S Release
The Wrap
PC Mag
ABC News
Referral: Guardian Reporter James Fenner

 

3 Responses to "Apple Stock Tumbles After iPhone 5S Announcement"

  1. Joe   September 12, 2013 at 4:56 am

    Down with Apple…. Samsung rules

    Reply

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