Apple Stock Plummets After New iPhone Reveal

Apple Stock Drops
Justin Sullivan/Getty Images

Wall Street not impressed with new smartphones aimed at two different consumers

Shares in Apple took a tumble on Wall Street as the company unveiled two new iPhone smartphones Tuesday.

Traders clearly weren’t impressed with Apple’s new iPhone 5C, aimed at a younger and more budget-conscious consumer, and the more expensive iPhone 5S that feature new colors, an updated operating system that boost functionality and faster chips. The screen sizes remain the same as the previous iPhone 5.

SEE ALSO: Apple Rivals Ready to Pounce with Trash Talk After Reveal of New iPhones

The stock started trading downward as the presentation began at 10 a.m., and shortly after it ended was off nearly $11 to $495.36, a loss of over 2%.

The stock dipped further as investors had time to digest the news, losing $13.79, or 2.72%, to trade at $492.38.

But the stock wound up gaining some ground to close at $494.64, still down $11.53, or 2.28%.

Apple’s stock price has increased 30% since late June.

SEE ALSO: Apple Loses More Than $30 Billion in Value After Unveiling New iPhones

The iPhone 5S launches Sept. 20, and be available for $199 (with 16GB), $299 (32GB) and $399 (64GB) with a two-year contract.

The more colorful iPhone 5C, available in green, yellow, blue, white and red, will cost $99 for the 16GB and $199 for the 32GB.

Filed Under:

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 12

Leave a Reply

12 Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

  1. Ferena says:

    Not impressed enough from unveiling iPhone 5c and 5s is just simply bullshit. Apple’s product is about quality not quantity. I dont believe about this “not impressed” philosophy. I still will support Apple against Samsung technology as the quality, Apple is the winner.

  2. A says:

    stocks don’t lie

  3. Jarvish says:

    FIrst, are iphone buyers going to accept a phone that is twice the price for just an additional 16gb of memory? That is one of the first time Apple has purposely treated the customer with that much contempt. Didn’t take long for Apple to start its’ downward spiral after Jobs’ death. If I were an analyst I’d be saying sell, sell, sell. Apple will soon become an also ran just like Blackberry.

  4. Robyn says:

    The Apple roller coaster continues.
    There seems to be a pretty clear — With Jobs / Without Jobs — performance pattern identified.
    Unfortunately, I think it will be pretty difficult to get him back a third time.

  5. Sam says:

    I’m disappointed and not that excited to get the new iPhone especially if verizon is making me pay full price or lose my unlimited data.

  6. TJ says:

    I posted the Yawn comment earlier. My comment was not to denegrate Apple. It has the only SECURE operating system on the market and if I were to purchase a smart phone it has to be an Apple product. All the other brands are using Android operating system, an off shoot of Linux, or Windows 8 that are full of security holes. People using these phones for sensative transactions may be in for some surpises in the near future.

    • Um TJ, you know Apple left a hole in the battery firmware to where hackers could make the battery explode? or the 200,000+ Imacs/Mac Pros that were vulnerable to a flash exploit? Or the millions of iPhone user data that was leaked to the public? And OS X is Darwin, an “offshoot” of BSD with an incredibly bastardized kernel that completely goes against open source policy. Apple secure? It’s about as secure as any other device out there, the only difference being that Apple had the facade of being secure due to hackers genuinely not being interested in hacking an OS that only took up about 5% of the user base, now that apple is becoming more mainstream, hackers are beginning to exploit the numerous flaws in OS X.

  7. catherine says:

    Wall Street never has any clue about what younger consumers want until after the fact. This phone is a godsend for parents whose kids have been asking for an iPhone but who couldn’t quite justify the expense. Sure, I don’t feel like I could rock a yellow iPhone, but a brand-new iPhone for $99 will be serious contender come holiday season.

  8. Sam says:

    Too bad traders were not impressed. If the IPhones deliver, and consumers get what they paid for then good for Apple for making then affordable to different budgets. It is similar with airlines which offer different seatings for different budgets. Greedy Wall Street as always.

More Digital News from Variety

Loading