Following the disappointing launch of Apple’s highly anticipated new handset, the company's shares have fallen by more than 4 percent.
“We acknowledge that if the iPhone 5 fails to reveal new features that impress Apple followers as one WSJ article today highlights, this could weigh on the stock as fears of product fatigue take root,” a stock analyst said before the unveiling.
“There were high expectations for today’s launch of the latest iPhone, with the new look iPhone 5 being the nomenclature of choice,” said analyst David McQueen of Informa Telecoms & Media. “However, there was a little disappointment in the air as, in actuality, Apple revealed a warmed up version of last year’s iPhone following 15 months without any hardware upgrade.”
Sprint shares also fell 10 percent to $2.73 after the Wall Street Journal reported that the wireless carrier had committed to ordering at least 30.5 million iPhones, costing $20 billion, in preparation for the new phone’s launch.
On Tuesday, Sprint’s stock fell an additional 12 percent to $2.40 by 11 a.m.
However, shares in Google rose on Tuesday, which proves that its Android operating system is going strong with consumers.
“The iPhone 4S looks the same, with similar industrial design, screen size and user interface but just with a little better innards. Having a faster dual-core processor helping improve battery life, 1080p HD video recording, an 8MP camera and the ability to roam between CDMA and GSM networks may float some people’s boat, but that may not be enough to seduce all Apple lovers to upgrade,” added McQueen.