Apple supplier shares slump on iPhone 5C pricing
Shares of Apple suppliers slumped on Wednesday, a day after the U.S. consumer technology giant unveiled two highly anticipated smartphones that failed to wow investors – the iPhone 5S and its lower-cost version, the iPhone 5C.
Shares of Taiwan-listed contract manufacturer Hon Hai Precision Industry fell 1.3 percent and camera phone lens maker Largan plunged 6.4 percent, while microphone and mini-speaker supplier ACC Technologies (ACC) declined 4.7 percent in Hong Kong. Declines follow Apple's 2.3 percent drop in the U.S. overnight.
(Read more: Apple goes plastic and colorful with new iPhone line)
Disappointment over the pricing of the iPhone 5C is weighing on shares, said market watchers, who fear that the price tag is too high and may limit sales in key emerging markets.
"I'm disappointed at the pricing of the 5C, which will not compete in the low-end market in China," said Tim Seymour, CIO of Triogem Asset Management.
According to Apple's China website, the phone would be sold at 4,888 yuan ($733). In the U.S., the phone is priced at $549 without a contract, and $99 with a two-year contract. Analysts had expected an unsubsidized price of $350-400.
"If the 5C is intended to be a phone that can compete with Samsung and even HTC, and some of the other Android models in Asia, it's not going to happen," he added.
Apple has been losing its foothold in China owing to fierce competition from rival Samsung and local manufacturers. The company's sales in Greater China, which includes Taiwan and Hong Kong, plunged 43 percent on quarter in the April-June period.
(Read more: Why 'device exhaustion' spells trouble for Apple )
At its Beijing product launch on Wednesday, the company was widely expected to announce a partnership with China Mobile to distribute its products on the mobile carrier's vast network. However, to the disappointment of many, no deal was announced.
(Read more: Apple granted China Mobile license, but no deal yet)
—By CNBC's Ansuya Harjani; Follow her on Twitter @Ansuya_H