Apple's New iPhones: The Good, the Bad, and the Ugly

Investors sprinted for the exits in the wake of Apple's (NASDAQ: AAPL  ) disappointing iPhone announcement this week. The stock sank 6% the following day in what was clearly one of the tech giant's most disappointing product launches in recent memory.

As has been widely argued at this point, the iPhone 5C, while a great device, failed to hit the low price point many investors had hoped for. As a result, Apple's emerging market problems are likely to continue.

However, it would be a glaring oversimplification to chalk the day up as a total loss. Quite the opposite; the launch arguably featured as many bright spots as low points, although the lows probably matter more than the highs for Apple's stock price. In this video, tech and telecom analyst Andrew Tonner reviews both the negatives and positives from this week's iPhone event.

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Read/Post Comments (7) | Recommend This Article (7)

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  • Report this Comment On September 13, 2013, at 10:17 PM, DanManners wrote:

    Motley was so bullish on Apple and now you are negative on the company. Yes sometimes I wonder what all those Apple employees are doing all day. Are they painting iPhone 5C with different colors or are they holding hands and singing?

    Apple could do well but they need to have a larger screen phone. Is that too much to ask?

  • Report this Comment On September 13, 2013, at 11:27 PM, Cuftbll wrote:

    You guys really need to get on the same page is Tim Cook. You know the guy who runs the most profitable business in the world.

    Emerging markets isn't part of the overall Apple strategy.

    Do you really think that Apple wants a customer that can barely afford a phone to enter their ecosystem? Or rather create products that attract customers that can spend money in the ecosystem?

    The ecosystem is the crown jewel and every step that Apple takes, small and big, is to grow that ecosystem.

    So how about create a phone like 5C that being s even more young Americans with money to spend in the ecosystem.

    I pretty sure that Tim doesn't have the guy the living in a clay house or working in a rice farm as part of the business model.

    64 bit, M7, touch ID....hints to the future!!!

  • Report this Comment On September 13, 2013, at 11:29 PM, Cuftbll wrote:

    No they don't need a larger screen. The sell the most popular device in the world and it is 4 inch!!!!

  • Report this Comment On September 14, 2013, at 12:02 AM, Cuftbll wrote:

    There are very different conversations being had in the Samsung and Apple board rooms. Samsung flood the market with phones. Apple only brings phones and hardware to market for the sake of the ecosystem.

    You think that for one second Samsung cares about Googles Eco system? The are competitors and Samsung is running different versions of android and in some cases a hybrid version.

    Apple has a different business model than hardware suppliers like Samsung.

    Apple's is sustainable.

  • Report this Comment On September 14, 2013, at 1:05 AM, applefan1 wrote:

    Apple does need the larger screen models to grow their iPhone business and it will increase profits.

    But I think the best strategy for Apple is what they are doing. If they come out with the big screen model, they should release it in about 6 months for several reasons.

    1. If they spread out the model releases twice a year, it spreads out their mfg and income. Yes, Apple has a huge Christmas, but they also need to increase the other months as well as piling on everything at one time hurts their production levels, and people buy products throughout the year.

    2. If they market the larger screen model in the end of March/April time frame, that will DEFINITELY take the wind out of Samsung's yearly model release as that is when they release their S Models. Especially since they have 64 bit processors and I don't know when Samsung is going to have a 64 bit version with a 64 bit OS and 64 apps ready to go. Google has to spit out a 64 bit OS first and then 6 months later, Samsung will be actually able to run 64 bit apps. So far, nothing is said about the future for 64 bit Android.

    3. It keeps these journalists from trashing Apple about not innovating and not coming out with a large screen model.

    4. It will help sell more expensive phones which is where the profits are. THERE IS NO MONEY IN LOS COST PRODUCT, REGARDLESS OF HOW MANY THEY SELL.

    Most tech products have their best quarter the first quarter they are released and then is subsequently goes down each quarter. By the time the majority of sales for the 5c and 5s happen between now and March, that would be the best time to introduce another model, and then come out with the next release of 4inch models next Sept. and then back and forth between 4inch models and 5 inch(or whatever size they are).

  • Report this Comment On September 14, 2013, at 8:34 AM, WeldonBrew wrote:

    Very interesting article on Apple's transition to 64 bit chips.

    http://appleinsider.com/articles/13/09/14/after-its-disastro...

  • Report this Comment On September 14, 2013, at 10:38 AM, bobbydig wrote:

    Andrew, skip the video and just write next time. You look like a middle school kids doing a News Broadcast. Companies who go for marketshare make so so products or eventually lose marketshare. Investor said the same about Apple and the Mac and suggested Apple should cut prices and compete with Dell. While this strategy works in the short term, so a select few investors can make big profits, but in the long term it hurts the company and people lose job. Apple is smarter then any Wall St. investor or tech company.

    More bad, bad advise by Motley Fool.

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