Investors were less than thrilled with Apple's big iPhone event Tuesday, primarily because of the price on the new iPhone 5C.
(Read more: Apple goes plastic and colorful with new iPhone line )
The unlocked iPhone 5C's high price (combined with no mention of a deal in China), caused Apple shares to dip after the event.
While the iPhone 5C starts at a subsidized price of $99, it costs over $500 without a contract. Many analysts had predicted that the phone, which has a plastic case and comes in multiple colors, would be about $350 unlocked.
(Read more: Apple live blog: Here comes the iPhone 5S )
But Apple is betting on the premium market, a move that could help it, said Gene Munster, an analyst at Piper Jaffray.
Munster, who has a $655 price target for Apple shares with an overweight rating, said that although the heftier price may result in fewer units sold, it will help preserve margins. A deal with China Mobile—that country's largest wireless carrier, with 750 million subscribers—will help Apple's bet pay off, Munster said.
"Ultimately, China Mobile is a huge opportunity, and that's going to be a positive," Munster said on CNBC's "Squawk on the Street." "It's a bold move. They are basically saying that they don't need price at this point to drive demand, and obviously getting a big carrier like China Mobile is going to be a huge factor in that."