Why Are Investors Angry With Apple?

Shares of Apple (NASDAQ: AAPL  ) are down nearly 6% the day after the company's media event at its Cupertino headquarters. According to Motley Fool analyst Matt "The Pirate" Argersinger, investors aren't pleased with Apple's lack of direction regarding a low-cost iPhone. While the company did unveil a cheaper version of the iPhone to be sold in overseas markets, Matt thinks that the price point is still too high for the average emerging market consumer. In addition, although China Mobile will allow iPhones to be used on the Chinese company's cellular network, there's still no firm deal in place -- something that investors think Apple needs.

But should investors buy Apple today? According to Matt, if investors bought today, they'd get shares of Apple at a cheaper price than Carl Icahn when he tweeted about the company a few weeks ago. If it's good enough for Icahn, and it's cheaper than where Icahn bought, then it may be good enough for you.

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Read/Post Comments (15) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 11, 2013, at 6:29 PM, RLLH wrote:

    Is this the Carl Icahn who lost a bundle on Dell?

  • Report this Comment On September 11, 2013, at 6:40 PM, skippywonder wrote:

    Yes, it's Carl Icahn the billionaire, who got to be a billionaire by being right more often then he is wrong.

    The buybacks will propel this stock upward over the next twelve months. You can bank on that.

  • Report this Comment On September 11, 2013, at 6:53 PM, Eaglepardie wrote:

    In terms of getting the new iphone into China:

    The Chinese like to spend more when products are more expensive, or another way of saying it, they don't buy cheap goods...it appears that Apple knows that and thus came out with the new "not-so-low-cost" iPhone.

    In fact, I think all the conversations on the price are totally irrelevant.

  • Report this Comment On September 11, 2013, at 6:55 PM, Justice007 wrote:

    They are tired of all the BS claims year after year. It is getting stale. "The most forward looking smartphone yet". How so? iPhone with 64 bits processor as powerful as a regular computer. Can we now get rid of computers then and just use the iPhone for all our computing needs? It is grandiose claims launch after launch. When or where will it stop?

  • Report this Comment On September 11, 2013, at 7:29 PM, cazic99 wrote:

    5C is for emerging market called KIDS, people are missing this completely. a 13 year girl walks into the ATT store with mom, is she going to chose the Space gray 5S with high tech finger print scanner for $199, the generic Samsung or other androids for $199,99,$49 or the hot pink brand new Apple 5C for $99. Think about that for a second...This is Apple's genius...And why they are making all the money and other comapnies are scraping the bottom

  • Report this Comment On September 11, 2013, at 7:40 PM, Cuftbll wrote:

    Forward looking which most people have no or little clue how to do. You think the 64 bit was just added to be something brag about, do you think that the m7 and its specific functions outside of the processor was added for nothing in mind, you think the finger print technology was added just for password convenience....geezus! People are narrow minded.

    The goal for Apple is to build an infrastructure where people won't leave and will be there go to for music, movies, TV, etc. The customers they are after are people who will invest in that infrastructure. That isn't someone in India or china or America that worried about price. Investment means the money to buy things in iTunes, Apps, movies, books, etc.

    Why is that so hard for people see? Selling cheap phones to a group of customers with no loyalty isn't how you build such infrastructure.

    Couple other misses:

    The 5C isn't built for China! American kids will love these. I can see them under a lot Christmas trees. This will attack the fastest growing age group 10-18 yrs old with a $99 phone. These kids have money and parents to build this infrastructure. This combined with the trade-in program that will cause not only new upgrades but stop the process of the hand my old phone to my kid. Now they can trade up and get their kid the 5c.

    Plus Apple turns around and sells the refurbish/used ones overseas. This will also reduce fragmentation by increasing more 4 inch screens in the market.

    iTunes is the crown jewel here and it is just the beginning!

  • Report this Comment On September 11, 2013, at 7:43 PM, thethreestooges wrote:

    If Chinese wants to buy cheap and cheaper smart phones, there are plenty to choose from. Apple does not need to go there and slugfest with these companies who keep losing money with marginal products and no profits.

    You have to realize that China Mobile is not ready to roll out any iPhones yet. Their network is not ready. Why bother to sell cheap phones if they are not ready? In 3-4 months, when it is ready, Apple will be ready to lower the 5C by then.

    Nope, Apple did not announce any stupid iWatch or iHeadband or iGlasses. They just offer products that they do best on. Samsung probably wondering what to do with the warehouses full of smartwatches nobody want. HAHAHAHA

  • Report this Comment On September 11, 2013, at 8:17 PM, Justice007 wrote:

    Happy to know you and you alone are so broad minded and in fact know all that Apple plans to do. Get over yourself. It is just a fancy gadget? Life will go on without it. Are you a nobody without Apple products? Sent from my iPhone 4 by the way. Respond with your essay now. Get a life and stop with your long essays full of nonsense to everything people say on Mötley Fool about Apple CuftbII.

  • Report this Comment On September 11, 2013, at 8:34 PM, Cuftbll wrote:

    You mean 4S on an AT&T unlimited plan. Black. My wife has a white 4S. One son has the latest iPod. You know the one that costs $300. My other son uses my wife's old 3S as a iPod and I sold my old 3S. Did I mention my wife has a iPad 2 white and I have an ipad 2 black. Oh my kids share a mini. I almost forgot we love our MacBook Pro.

    Guess who is trading two 4S' for two 5S'.

    Don't be bitter that your stuck with your cheap gadgets on old Android OS.

  • Report this Comment On September 11, 2013, at 8:36 PM, Cuftbll wrote:

    And by the way...you speak goof enquish mi tink toe.

  • Report this Comment On September 11, 2013, at 9:52 PM, Justice007 wrote:

    Did you mean to say you think my written english is good or bad? You haven't heard me speak , have you? You see what happens when you have an inflated sense of self? You make a fool of yourself.

  • Report this Comment On September 12, 2013, at 2:23 AM, djtetsu wrote:

    Cutbill, you made perfect sense and reminded me of the 80/20 rule, with Itunes you will have a lot of your revenues from not the masses but a small percent.

    Huge gross margins, while appealing to the younger generation who will join into their ecosystem, and I mean.. especially girls (who wants things simple PLUS have the stores at the malls, e t c)

    This is genius, and I realize more and more investors/wallstreet are not visionaries.

    As Tim Cook keep stating it's the intersection of software, hardware, and service that creates the magic. Samsung and google provides only the first two.

  • Report this Comment On September 12, 2013, at 6:11 AM, Justice007 wrote:

    "Growth companies should always focus on UPOD; Under Promise, Over Deliver. Apple (AAPL) CEO Tim Cook has done the opposite; he talked a big game about how Apple was going to release dazzling devices in 2013, and on the release of the newest iPhone which was "all hype and no buzz," the stock dropped 26 dollars. Now Apple is starting to lose ground to its competition. Management of companies like Under Armour (UA), Chipotle Mexican Grill (CMG), Celgene (CELG) and Regeneron (REGN) know the importance of keeping expectations modest and remarks subdued and then delivering surprises which cause their stocks to rally. The only thing Apple can do at this point to save itself is to become less extravagant with claims and perhaps to use extra cash to buy Twitter or Netflix (NFLX)."

    By Jim Cramer of Mad Money.

  • Report this Comment On September 12, 2013, at 7:45 AM, jdmeck wrote:

    Most investors have no clue. They should take Warren's advice and stay out of what they don't understand. Two many fools are looking at the short term (new phones) and not the long term (new tech).

  • Report this Comment On September 12, 2013, at 11:31 AM, BxBruce007 wrote:

    "The only thing Apple can do at this point to save itself is to become less extravagant with claims and perhaps to use extra cash to buy Twitter or Netflix (NFLX)."

    Said Jim Cramer who told the world to stay away from Netflix at $60 but now wants Apple to buy it at $300. Yeah, let's follow his lead.

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