Source: Youtube/Apple

Apple Inc's iPhone 5C and iPhone 5S were not impressive enough for investors as the expectations regarding the price of the new iPhone 5C was too costly for emerging markets even in China, the second largest economy in the world. Apple iPhone 5S did not escape criticism as Wall Street investors said it lacked game-changing features even if the iPhone 5S is the first 64-bit smartphone with a Touch ID or fingerprint sensor.

Investors believed that Apple Inc, the world's most valuable company, had missed its chance to release a low-end or budget iPhone to increase sales in emerging markets particularly in Asia. Korean electronics giant, Samsung and China's Huawei have taken a wide lead over Apple's iOS devices.

The plastic back-covered iPhone 5C that was launched in Apple's Sept. 10 event at its Cupertino headquarters will sell in China for 4,488 yuan or $730. The price will be more than China's average monthly urban income. It is also twice the cost of buying a mid-priced smartphone from Samsung and other Chinese manufacturers. Xiaomi, touted as the Apple of China, sells its mobile phones for $100.

Many investors were turned off with Apple's pricing strategy. The iPhone 5C price was not low enough in the eyes of investors to attract a new market or first-time iPhone users in China. Chief investment strategist at Philadelphia's Janney Montgomery Scott said Apple Inc. simply doesn't have the same price range as its closest rivals.

Apple's high-end iPhone 5S also failed to dazzle investors and triggered fears that the company has lost its ability to innovate with the release of its new iPhones. Stock analysts said the iPhone 5S fingerprint scanner was not a sure game-changer in the already crowded smartphone market.

Apple Inc's shares slid to its month low at $467.71 per share or 5.4 per cent lower on the Nasdaq. Three brokerage firms have already downgraded Apple's stock ratings.

However, Wallstreet is still counting on Apple to secure a partnership with China Mobile to give the telecom's more than 740 million subscribers the chance to buy iPhones.

RELATED STORIES