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Investors dump Apple shares, wanting a lower price for the Apple iPhone 5C

Posted: , by Alan F.

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Investors dump Apple shares, wanting a lower price for the Apple iPhone 5C
Investors, disappointed by the price that Apple put on the Apple iPhone 5C, took 2.3%, or $11.53 off the shares of the Cupertino based tech giant. Usually, traders dump a company's shares when they introduce a product priced too cheaply for the company to profit from. But in this case, Apple stockholders were hoping that the iPhone 5C would be priced low enough to compete with some low-end models, like the Nokia Lumia 520, that are eating Apple's lunch in emerging markets.

While originally, the Apple iPhone 5C was seen as a new budget model that would replace the free Apple iPhone 4 in Apple's line up, the truth was that the iPhone 5C replaced the Apple iPhone 5 and the Apple iPhone 4S slid into the budget slot. While the price of the Apple iPhone 5C on contract is $99, off contract it is $549 which hardly competes with the $150 off-contract price of the Nokia Lumia 520. Once Apple announced the off-contract price of its plastic iPhone 5C, sellers came into the market. If Apple was hoping that the new model would allow them to compete in India and Africa, they can put that to rest now, according to Wall Street analysts. "While (the Apple iPhone 5C pricing) might not matter in North America and Europe, it matters in emerging markets, which is what everybody, including me, thought they were really going to be targeting aggressively,"  said Wedge Partner analyst Brian Blair. "It just feels like they should have been more aggressive."

"Consumers in the upper reaches of the smartphone mid-market are increasingly looking to distinctive devices of their own, and are not happy to accept castoffs or dumbed-down versions of former flagships. Color variations and a clear design of its own is a good way to do this."-Tony Cripps, principal device analyst, Ovum

Apple's shares peaked at $705 last September 21st, the day the Apple iPhone 5 launched. Since then, the Apple Maps debacle, fierce competition with Samsung, and worries that Apple was no longer innovative, have left their mark on the stock which closed Tuesday at $495. If the shares peaked when the Apple iPhone 5 was released, will this year's launch mark a bottom?

Apple's Philip Schiller stands in front of pricing information for Apple's new line up

Apple's Philip Schiller stands in front of pricing information for Apple's new line up


source: Yahoo

53 Comments
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posted on 10 Sep 2013, 19:14 43

1. frydaexiii (Posts: 1460; Member since: 01 Dec 2011)


I can\'t wait for PA\'s review for the 5C...Let\'s see how you bullsh!t your way out of \"cheap plastic\" and \"justified price tag\".

posted on 10 Sep 2013, 19:18 18

3. HouTexan (Posts: 439; Member since: 08 Jan 2012)


I can almost guarantee they will.

posted on 10 Sep 2013, 19:19 15

4. Googler (Posts: 813; Member since: 10 Jun 2013)


I\'ve been waiting for that as well, especially the \"premium build quality\" section, aka if it isn\'t aluminum, it\'s cheap. Stupid standard that should never have been fed.

posted on 10 Sep 2013, 19:45 5

7. RoyalPayne (banned) (Posts: 458; Member since: 07 Aug 2013)


Did they call any high end lumia cheap? Don\'t blame them for the shortcuts ur fav companies take.

posted on 10 Sep 2013, 20:51 1

21. Long1 (banned) (Posts: 399; Member since: 18 May 2013)


Of course they should attack only Samsung.
It's Samsung that smash their iIcon and religion, not Nokia, or HTC, or LG

posted on 10 Sep 2013, 20:52 10

23. Googler (Posts: 813; Member since: 10 Jun 2013)


Every polycarbonate phone that gets compared to iPhones get negative comments when compared to the "premium aluminum build quality" of the iPhone. Whole aluminum vs plastic argument is stupid and over blown. Both have advantages, both have disadvantages.

So, yeah, I'm curious to how this gets spun now that Apple is using plastic.

posted on 10 Sep 2013, 21:39 3

32. moroninc (Posts: 193; Member since: 14 Jul 2012)


title reads: \\\"Plastic is the new sexy\\\"

posted on 11 Sep 2013, 15:56

51. donfem (Posts: 652; Member since: 30 Mar 2011)


Just ask the ipologists to explain away the "cheap" look of their cultic phone

posted on 10 Sep 2013, 19:50 4

8. SuperNexus (Posts: 127; Member since: 18 Jan 2013)


Samsung is moving on from plastic(as per rumor) and Apple is started manufacturing plastic phone.

posted on 10 Sep 2013, 19:56 9

10. CX3NT3_713 (Posts: 2283; Member since: 18 Apr 2011)


Yea.. they are moving on to a faux leather plastic

posted on 10 Sep 2013, 20:10 5

13. Shatter (Posts: 2036; Member since: 29 May 2013)


Actually Samsung said they have metal phones coming in 2014.

posted on 10 Sep 2013, 20:56 4

25. Long1 (banned) (Posts: 399; Member since: 18 May 2013)


I hope you are wrong. Aluminum is the worst material for phones.
Espesially is they are with removable back.
If Samsung do it, they are dead.

posted on 10 Sep 2013, 21:57

33. axllebeer (Posts: 271; Member since: 05 Apr 2011)


Agreed. I wish more companies would use stainless steel like BlackBerry has on some of their phones for the last few years. ie: Bold 9900/9930 and the Q10.

posted on 11 Sep 2013, 05:48

45. ashisharbola (Posts: 62; Member since: 20 Oct 2012)


I don't think so....HTC has introduced HTC one with removal back in china and Samsung got more resources than any other company to do so.

posted on 10 Sep 2013, 20:25 1

17. RoyalPayne (banned) (Posts: 458; Member since: 07 Aug 2013)


Lol. :p

posted on 10 Sep 2013, 20:53 1

24. Long1 (banned) (Posts: 399; Member since: 18 May 2013)


Many honest rviewers, say that faux leather is GREAT touch and feel.

posted on 10 Sep 2013, 22:15

36. pwnarena (Posts: 1129; Member since: 15 Feb 2013)


yeah. stupid leather that makes the phone more easily infested by microorganisms. a shiny plastic phone already gets dirty quickly enough. what made them think leather is such a good choice?

posted on 10 Sep 2013, 20:25 3

16. RoyalPayne (banned) (Posts: 458; Member since: 07 Aug 2013)


They used to make beautiful metal phones, i dunno what happened to them. Remember the Wave I?

posted on 10 Sep 2013, 19:55 8

9. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)


They will say that the plastic feels premium and that it was treated with a special iChemical to promote biOdegradability. They will also point out the new and unannounced iBounce feature, instead of your iPhone shattering into a biLLion particles when you drop it - it will just bounce back up to you like a yo-yo and without a scratch making a baaa-haaaa-had situation goo-hoo-hood.

posted on 11 Sep 2013, 09:23

47. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)


Will the bouncing phone be called the iBounce? If they could pull it off, they might actually be onto something. Certainly, no one (not even Sammy) could claim that Apple is copying.

posted on 11 Sep 2013, 16:47

53. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)


Your so funny Papinyc, really you take the living piss out of Apple fans and users. I really like you.+1000 if I could... Keep it up

posted on 10 Sep 2013, 20:08 2

12. TheLolGuy (Posts: 483; Member since: 05 Mar 2013)


Regardless of premium and justified or not, the price is not good. I'm guessing this counts as their 'mid-ranger' and they don't want to stoop down to making low end devices because that doesn't jive with the image of classy and premium that they created for themselves. (I'm not saying that they are or not, so don't even bother telling me your opinion about why its not ok?)

It kind of reminds me of the justification the PS3 designer said, when confronted about the $599 price. He said:

"We want consumers to think to themselves 'I will work more hours to buy one.' We want people to feel that they want it, irrespective of anything else."

I figure they just made one a little bit cheaper to nab people who would otherwise be on the fence.

posted on 10 Sep 2013, 20:19 7

15. taz89 (Posts: 2014; Member since: 03 May 2011)


The problem I see is that the 5c is not even a mid range price and is effectively still priced as a high end phone.. They essentially have 2 high end phone with one being just a little cheaper.. Imo midrange is below $400

posted on 10 Sep 2013, 20:29 1

19. RoyalPayne (banned) (Posts: 458; Member since: 07 Aug 2013)


+1 to that

posted on 10 Sep 2013, 21:13 1

29. papss (unregistered)


Agreed... At this price it's only 15.00 cheaper than a G2!! It's not that nice imo and I really don't like the way the colors and style of plastic is used.

posted on 10 Sep 2013, 22:06

35. TheLolGuy (Posts: 483; Member since: 05 Mar 2013)


Refer to my first sentence 'the price is not good'

Off contract pricing for the latest iPhone model is around 650+. The iPhone 5C looks to be around 500 which I have clearly stated is too high.

I think your price target would've probably convinced a lot more potential customers. If it were my decision I'd probably try to bring it close to 400 too.

posted on 11 Sep 2013, 00:01

38. Furbal (Posts: 1018; Member since: 22 Sep 2012)


+1, LG OGP for $434, S4 for $549, Lumia 925 for ~$460, HTC ONE ~$560, Nexus 4 $199/$249.

The plastic was just used to lower manufacturing costs so they can get their profit margin back.

posted on 10 Sep 2013, 20:28 3

18. RoyalPayne (banned) (Posts: 458; Member since: 07 Aug 2013)


I couldnt agree more. 5C price isnt justified at all.

posted on 10 Sep 2013, 21:05

26. Long1 (banned) (Posts: 399; Member since: 18 May 2013)


PA can't help this, no matter how much they love Apple:

iPhone 5C is not for the Asian market, because they like big screens!!!!!!! (with SD support and FM radio.Besides is not cheap at all- 550$ starting price)

iPhone 5C is not for the US market, because the iFans don't buy plastic. Apple's media propaganda(like BGR) made them hate plastic.

So who's gonna buy iphone 5C?

posted on 11 Sep 2013, 02:46

40. rusticguy (Posts: 2828; Member since: 11 Aug 2012)


Probably Non Aristocratic Americans.

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