Apple stock won't see much of a lift from its new low-cost iPhone 5c, Jeffries Senior Technology Analyst Peter Misek said Tuesday.
"See, even if it's subsidized, it's pricing itself out of the market, and the reason is that the subsidy amount will be added to your monthly bill, and the average Chinese person, Indian person can't afford it," he said. "It's just too expensive. Every analyst expected – including ourselves – the phone to be priced $300 to $400. This is a lot higher."
Apple announced two new iPhone models, the 5c, which starts at $99 with a subsidy, and the 5s, which starts at $199.
Misek has a $450 price target and a "hold" rating on Apple stock.
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"That low end of the market is where the growth is. The high end is saturated," he said. "We think this is not a good thing. We were very, very disappointed."