NEW YORK (AP) — Apple Inc. shares fell before Wednesday's opening bell, a day after the company unveiled a pair of new iPhones.
The phones, which will be available Sept. 20, include a cheaper one that's made of plastic and a higher-end version that includes finger print-scanning technology.
The move comes as Apple tries to fend off Samsung and other competitors that want to challenge the company in the competitive smartphone market. The lower-cost iPhone 5C is expected to help boost sales in China and other areas where people don't have as much money to spend on new gadgets as they do in the U.S. and Europe.
Citi analyst Glen Yeung said he was disappointed with the pricing of the 5C, which will retail for a minimum of $99, or $549 to $649 without a new agreement with a wireless carrier.
"At this level, we do not expect the iPhone 5C to meaningfully penetrate emerging markets without substantial subsidy," Yeung, who rates Apple stock at "Neutral," wrote in a note to investors.
He also noted that phones priced above $300 account for just 14 percent of the global market. Yeung kept a target price of $430 on Apple shares, well below its current trading price.
Cantor Fitzgerald'sBrian White was more optimistic, saying that he thinks Tuesday's announcement will prove to be part of a larger string of events that will mark a "year of innovation" for Apple. He backed his "Buy" rating for the stock and kept his $777 price target, the highest among more than 40 analysts surveyed by FactSet.
In premarket trading, Apple shares fell $20.09, or 4.1 percent, to $474.55. The stock shed 2 percent in Tuesday trading.