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Apple may have created two new iPhones, but the latest models weren't enough to impress investors and analysts.
Shares of Apple (AAPL , Fortune 500) tumbled 5% in early morning trading Wednesday. That erased more than $20 billion in market value for Apple and follows a 2% slide in the stock Tuesday.
The stock is now trading below where it was just before activist investor Carl Icahn tweeted that he has taken a "large" position in Apple. Icahn wants the company to use its $147 billion in cash to buy back more shares.
Apple unveiled a new flagship iPhone 5S Tuesday that will cost $649 contract-free. It also debuted the iPhone 5C, a colorful and plastic iteration of the device, at $549 without a contract. But there were no surprises in the iPhone announcements. And analysts think the price differential between the two new products may not be enough.
Analysts at Bank of America, UBS and Credit Suisse all downgraded the stock to "neutral" Wednesday morning, citing concerns about the pricing.
Related: Apple's new iPhones: Hits and misses
UBS analyst Steven Milunovich said he is concerned that the meager $100 difference will hurt the country's ability to be competitive in key growth markets like China,
Apple also announced it has cleared the final regulatory hurdle required to run the iPhone on China Mobile's cellular network, the world's largest carrier. But analysts were expecting Apple to announce a deal with China Mobile (CHL ) that would have allowed them to start selling the phone immediately.
Milunovich said even if Apple secures a partnership with China Mobile in the near future, it will be challenged to complete against the comparable devices that run Google's (GOOG , Fortune 500) Android are priced 40% to 50% below the iPhone 5C.
via apple - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFlcSmsU4V4eTosncZ-_FVHX9dGEA&url=http://money.cnn.com/2013/09/11/investing/apple-stock-downgrades/
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