Apple’s stock tumbles after company fails to deliver cheaper iPhone

Apple’s stock tumbles after company fails to deliver cheaper iPhone
Apple’s Phil Schiller discusses the new iPhone 5c.
(Chris O’Brien / Los Angeles Times)

Apple’s stock sank more than 5% on Wednesday as investors expressed their disappointment that Apple did not unveil a cheaper iPhone on Tuesday. 

The company did roll out the new iPhone 5c, a plastic-coated phone available in five colors. However, the price came in much higher than expected.


About an hour after Wall Street’s opening bell, Apple shares were trading at $466.37, down $28.27, or 5.7%, from Tuesday’s closing price. 

Video: Here’s how Apple’s iPhone 5S, iPhone 5C work


The 5c will sell for $99 with a contract. But without a contract, the price starts at $733 in China and $549 in the U.S. That makes the iPhone 5c Apple’s midpoint phone, between the high-end iPhone 5s and the older iPhone 4S.

Analysts have been clamoring for a cheaper phone to make Apple more competitive in overseas and emerging markets, where Samsung’s Android phones have become the runaway leaders. 


Apple goes for gold, unveils iPhone 5S


New iPhones go on sale Sept. 20; prices start at $99

Everything you need to know from Apple’s iPhone event

Get our weekly Business newsletter

A look back, and ahead, at the latest California business news.

You may occasionally receive promotional content from the Los Angeles Times.