Apple shares fall over 3% after 1st 5G iphone 12 launch

Reuters photo

NEW YORK: Shares of Apple tumbled over 3 per cent on Tuesday (October 13) at a time when the tech-giant unveiled its new iPhone model that is the first to be used on ultra-fast 5G networks. The fall in the share erased USD 77 billion worth of stock market value, and closed down 2.7 per cent. 

The latest model iPhone 12, with a 6.1-inch display, will be available for USD 799 while a 'Mini' version with a 5.4-inch screen will be slightly cheaper at USD 699. A 'Pro' version with three cameras and a new 3-D 'lidar' sensor starts at USD 999, with the largest 'Pro Max' starting at USD 1,099 and going up to USD 1,399.

Check Photo Gallery: Apple launches iPhone 12 series, HomePod mini

Apple said all iPhone 12 models in the United States will support millimeter wave 5G, the fastest variant of the technology, as well as lower-frequency bands.

Apple may face a lukewarm holiday season due to the coronavirus pandemic, Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma told Reuters. "As the convergence of flu season with COVID and colder weather forces everyone indoors, I think it`s going to be harder to sell iPhones this Christmas. As much as Apple is a technology company, it`s not known for its online sales, it`s known for its in-store experience," Dollarhide said.

Apple also announced a HomePod Mini smart speaker that will cost USD 99 and be shipped from Nov. 16. Many of the features serve as a catch-up to similar offerings from Amazon.com Inc and Alphabet Inc's Google.