Apple shares drop more than 5% as new products miss the mark

Shares in Apple have plummeted more than 5% this afternoon, after a disappointing reception for the tech giant's two new iPhone models released last night.

The group's shares were down 5.3% to $468.5 in early trading in the US, amid a wave of downgrades from analysts. The higher-than-expected price of the new products - the cheapest of the new products costs £469 - has sparked concerns the company could lose its competitive advantage against Google's cheaper Android operating system. Apple's third quarter sales reported in July beat analysts' expectations, as iPhone sales jumped, but net profit was down 22%, marking a slowdown for the company. The positive results had boosted the share price at the time, but the expensive new product ...