Apple Shares Take A Hammering after iPhone 5S and 5C Announcement

It seems that not everyone is pleased with Apple's latest offerings in the phone market. In particular, investors in the stock market. Apple shares are taking a beating today due to the fact that people feel that Apple is not coming out with anything really new.

At the moment, Apple shares are down about 5% (to about $470 per share) on the NASDAQ. The reason seems to be that investors feel that Apple is just releasing more of the same in fancy clothes, and that they are not targeting the people who buy phones off-contract.

People can get the 5C phones for a reasonable price if they sign up for a multi-year contract (about $99), but the subsidized price will run them $549 and in China they want $700.

"So much for the low end," said Credit Suisse analyst Kulbinder Garcha in a research note.

"We remain disappointed with Apple's decision to remain a premium priced smartphone vendor."

Garcha said that the new top-line iPhone 5S was "lacking real innovation" and that the lower-cost version may hurt sales of the premium product.

The iPhone 5C is an attempt by Apple to take on the flood of low-cost alternative phones from other vendors, most of which are using the Android operating system. The market is currently dominated by Android phones to the tune of about 85%, leaving Apple with around 17% of the market.

Apple executives were noted as saying that the iPhone 5C is a "beautiful" device and that the 5S would be the "gold standard in smartphones."