Following yesterday's launch of Apple's next-generation iPhones, the company saw its stock drop more than 5-percent this morning shortly after the markets opened. The drop saw Apple's stock dipped below $466 per share, and was the direct result of UBS, JP Morgan, Credit Suisse and Bank of America all downgrading their ratings on the company's stock.
Of course a drop in investor confidence was also a major factor as many feel that the so-called "cheaper" iPhone 5C was just not cheap enough. Investors were hoping for a low-end model that would be able to compete with cheaper Android phones in emerging markets such as China. Unfortunately the news that the iPhone 5C would cost Chinese customers more than $700 (roughly two times the monthly salary of those who work in the factories that make the iPhone) was just to astronomically high for most consumers in the country.
"The lower-priced iPhone 5c may not be priced low enough, in our view, which could limit incremental penetration of the midrange smartphone segment," writes Mark Moskowitz, an analyst at JP Morgan. At the time of this writing Apple's stock had dipped to almost a 7-percent drop since closing yesterday.