Shares of Apple are in free-fall today on Wall Street as investors continue to react negatively to Apple’s iPhone announcement.
While the tech world is largely impressed with the innovations touted, traders are expressing concern about another issue – the price tag attached to Apple’s iPhone 5C.
Billed as the low-end, entry-level iPhone model capable of giving Apple an attractive edge in emerging mobile markets like China and India, the iPhone 5C is not as affordable as hoped.
Scores of Wall Street watchers were hoping for an iPhone 5C price of $400 or less without a contract subsidy. Instead, the The iPhone 5C starts at $549.
“Bank of America-Merrill Lynch downgraded Apple to ‘neutral’ from ‘buy,’” ABC News reported this morning. “Similar actions were taken by analysts for Credit Suisse, Piper Jaffray and UBS.”
As a result, Wall Street reacted unfavorably to Apple today. As of this writing, AAPL is down close to 6% or $30 per share.