Is it an iPhone or a Sleeping Pill? Investors Greet News of iPhone Refresh with Muted Anticipation
The timetable is widely expected and anticipation is muted. The phone is likely to be only a modest upgrade and many are already looking past the device to a cheaper priced phone that could be released later this year. Apple has faced criticism for having a small screen size relative to Samsung's Galaxy phones and many were hoping Apple would finally catch up to the market. This does not appear to be the case.
This morning Apple was downgraded from Conviction-Buy to Buy by analysts at Goldman Sach. Like many other analysts, Goldman expressed caution about Apple's lack of new innovation, and while the bank is still positive on the stock, analysts are also looking past the iPhone 5s to phones with larger screens.
"There is still little tangible evidence in the food chain that Apple is planning to produce such a product in the near term, and if this device is delayed until 2014, the company could face further competitive pressures in the high-end segment of the smartphone market in 2H2013," said analyst Bill Shope.
Shope is hopeful Apple can get its head back in the game, but admits new products need to be hits to reignite the stock's momentum.
In the meantime, news of a refreshed iPhone is being greeted with the sound of investors snoring.