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Apple's share price plummets on "disappointing" iPhones

Apple's new iPhones, intended to save the company from its falling share price, have done the exact opposite, with investors declaring the announcement a disappointment.

As we reported earlier this morning the company released two new phones, a high-end but unspectacular iPhone 5S, and a low-cost colourful iPhone 5C, the latest challengers to Android's growing smartphone dominance.

Investors have been left wanting, however, with the company’s shares down 2.3% to $494.64 at the close in New York.

Bloomberg quoted analysts who said the event lacked surprise, blaming the many leaks of pictures and details about the new iPhones over the past few months.

‘‘Many investors were hoping for that one single atomic event where they got aggressive on pricing,’’ said Gene Munster, an analyst at Piper Jaffray Cos.

‘‘Instead, in Apple’s own way they think they can accomplish their goal - gaining market share - without blowing up their margins.’’

Meanwhile with a lower-priced iPhone, Apple is ‘‘walking a tightrope between growth and profitability,’’ said Sarah Rotman Epps, an analyst at Forrester Research.

iTWire's Graeme Philipson described the event as "underwhelming" and "very disappointing", and said that Apple would continue to lose market share.

It is worth noting, however, that often people buy stock in the days ahead of a much-anticipated event like an iPhone release, and then sell on the day of the event in order to capitalise.

Check out the graph below, courtesy of Yahoo Finance, and draw your own conclusions.

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