China Mobile Limited

Apple's stock tumbles after company fails to deliver cheaper iPhone

SAN FRANCISCO — Investors punished Apple's stock Wednesday, driving it down more than 5% after the technology giant disappointed Wall Street by failing to announce a cheaper iPhone and a deal with China's largest wireless carrier.

Both bits of news had been widely expected at an event Apple held at its headquarters Tuesday.

Although a partnership with China Mobile is still imminent, shareholders and Wall Street analysts were not as confident that Apple will regain much momentum in emerging smartphone markets such as China without a more affordable phone.

"Apple is positioned as a very premium brand in China, priced out of reach of most consumers," said...