Apple shares nosedived for the second day running Thursday after critics slammed the company's lackluster new iPhone models.
"Apple's fate looks to be the same as the last time Steve Jobs left the company, but this time it's forever," USA Today said in a column in its Thursday edition. "The iPhone was a pretty revolutionary tool, especially the iPhone 3. Now, each iteration is just slightly different."
The overall assessment is that the iPhone 5S is basically the same as the iPhone 5, with the same display, same camera and lacking any innovative new functions.
Critics are also saying that the mass-market iPhone 5C, which targets emerging markets like China, is still too expensive. Telecoms in the U.S. are selling it at a starting price of US$99 for the 16GB model with a two-year subscription, but on its own it costs $550.
In China, unless customers go through a telecom, the iPhone 5C will cost a breathtaking 4,488 yuan ($733).
CNBC said that sort of price tag would not appeal to consumers in an emerging market like China. One of the most expensive smartphones being sold in China is Samsung’s Galaxy S4 at around 5,100 yuan. In other words, the iPhone 5C is no mass-market phone.
UBS has cut Apple's target share price from $560 to $520. Credit Suisse also evaluated the pricing decision as "excessive" and downgraded its investment view for Apple from "Outperform" to "Neutral."
Apple's shares on Wednesday plunged 5.4 percent after falling 2.3 percent on Tuesday, when the company unveiled the new models.
Apple's major parts suppliers also saw their stocks drop. LG Display, which makes screens for the iPhone, fell 3.06 percent on Wednesday and 4.21 percent on Thursday. Qualcomm, which supplies chips, fell 2.9 percent on Wednesday.