Wall Street pours cold water on Apple's big day in the limelight
The most surprising thing about Apple's iPhone announcement yesterday was the lack of surprises, according to the tech giant's local paper, the San Jose Mercury News.
Colorful iPhones don't halt share slide
Wall Street responded with a lack of enthusiasm, seemingly oblivious to a new announcement expected in Beijing, Tokyo and Berlin today about a deal with China Mobile, the world's biggest mobile carrier, which is expected to add millions to iPhone sales.
The new iPhones, particularly the colourful, cheaper 5C are expected to be very popular in China. They will run on the new iOS 7, feature high-def Retina screens - and be on sale in the world's biggest smartphone market at the same time as the US.
Apple has also announced a partnership with NTT Docomo, Japan's largest mobile carrier.
There had been speculation that Apple might unveil a new "wow" gadget, such as the long-rumoured iTV or iWatch, or at least a revamped Mac or iPad. Though it's the world's most valuable company, some analysts have said that with smartphone sales flattening, Apple desperately needs another innovative, game-changing device to stay on top.
Apple shares were down or 2.28 percent, to close at $494.64.
Another investors' concern, said the Mercury News, was that the iPhone 5C, which will start at just $99 for a two-year contract, will undercut Apple's own products.
Apple is "walking a tightrope between growth and profitability," Forrester Research analyst Sarah Rotman Epps told Bloomberg News.
However, some thought we should wait and see. "We need to let Apple go after their market share and then bring in innovation for the next wave," Laurence Isaac Balter, chief market strategist for Oracle Investment Research, told the New York Times. Balter said he sees the 5C as a stopgap measure to cut Apple's losses, buying it time to focus on that next "wow" product.
That could be the subject of another product announcement, expected as soon as next month.