Dubai: Apple stocks plunged by more than five points in early trading in New York, but analysts said on Wednesday that they were not surprised by investor disappointment with the launch of the iPhone 4S.
Hamza Salem, IDC senior research analyst mobile handsets MEA and Turkey, said the failure of the iPhone 5 to materialise after weeks of hype was a let-down not only for fans but also for markets.
"The stock price has been moving around since Steve Jobs resigned, and with all the legal battles Apple has been fighting against HTC and Samsung, the new model has been a much-awaited high moment for Apple," Salem told Gulf News from IDC's Dubai offices.
"With no iPhone 5 and with Steve Jobs gone, the speculation will be that Apple might lose its way in the near future."
The unusual disappointment of an Apple global announcement does not bode well for new Apple CEO Tim Cook. Salem said all eyes were on the new guy at the helm and his first steps after Jobs' departure.
"Tim Cook has been on the operations end of Apple and has been credited with increasing the profit margins by streamlining the supply chain," Salem said.
"He comes from a different mindset and doesn't have technical knowhow for creating new products.
"His claim on the launch of the iPhone 4S, about iPads making way into the cockpits to save on bulky manuals, reflects the mindset he has [toward] cost savings."
As for the new iPhone 4S, Apple says it has more computing clout and will be faster. Salem said the UAE release of the upgraded phone would be in December or January.