Apple shares fluctuate after iPhone launch
Shares of Apple, Inc. (NASDAQ:AAPL) opened the day on a high note as the company launched its next-generation iPhones. Shares later backtracked on news that several networks were experiencing supply shortages of the premium iPhone 5S model.
Apple featured two iPhone models at its unveiling last week, the 5S and 5C. The 5S has been described by Apple as the “gold standard” of smartphones, featuring a processing chip that is twice as fast as its predecessor. The iPhone 5C is the most affordable iPhone yet, and will be made available for as low as $99 on a two-year contract.
The maker of the iPhone and iPad fell sharply after unveiling its next generation smartphones, hitting $450.12 (a seven-week low) on September 16. Prior to Friday, share prices were up more than 2.5 percent on anticipation of the new operating system, the iOS 7.
Apple attributed the shortage of iPhones to the product’s popularity, saying supply has been unable to keep up with the huge demand. Apple told technology news site AllThingsD.com the iPhone 5S model was either sold out or in limited supply. Meanwhile, supplies of the cheaper iPhone 5C appear plentiful.
Analysts speculate Apple is attempting to drive sales of its cheaper 5C model as the company battles for market share against Android devices. Investors are however unconvinced the 5C’s price is low enough, and based on several insiders, consumers appear hesitant to place orders on the cheaper device. The 5C has been described as a colourful replica of the iPhone 5.
Thursday marked one year since Apple shares hit an all-time high of $702. Since then, shares have plummeted more than 32 percent as the company wrestles for market share against Android devices, and investors wait for another breakthrough product similar to the iPhone or iPad.
Apple shares closed at $467.41, a loss of more than 1 percent.
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