Tech Declines Led by Apple Inc. (NASDAQ:AAPL) & Chipmakers: QUALCOMM, Broadcom Corporation, Texas Instruments Incorporated
Tech sector shares mostly fell today; the declines come in influence to the fall in Apple Inc. (NASDAQ:AAPL) shares, that fell more than 5% on Wednesday as investors reacted to the price of the new iPhone 5C in emerging markets such as China. The fall is Apple Inc. (NASDAQ:AAPL) shares come after the analysts at Credit Suisse, UBS and Bank of America/Merrill Lynch, all trim their ratings on the company’s stock, cited that the iPhone 5C, which will start at $99 in the U.S with a two-year service contract, will cost the equivalent of $733 in China for an “unsubscribed” phone, that means that the phone doesn’t come with a contract from a wireless carrier.
The analysts at UBS analyst Steven Milunovich, slashed his rating on Apple stock to neutral from buy, and also reduced his price target to $520 a share from $560, said he fears Apple’s pricing strategy will hamper the company’s ability to be competitive in key growth areas in the smartphone market, specifically in China.
The notable decliners are those companies, which provided chips for the iPhone and other smartphones also retreated, with QUALCOMM, Inc. (NASDAQ:QCOM) shares were down 3%, to $68, and Broadcom Corporation (NASDAQ:BRCM) shares were down 2% at $26.13. In techs sector, losses also came from Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN) and Texas Instruments Incorporated (NASDAQ:TXN). Shares of Netflix, Inc. (NASDAQ:NFLX) fell -2.78%. Amazon.com, Inc. (NASDAQ:AMZN) shares were off -0.21%. Texas Instruments Incorporated (NASDAQ:TXN) shares were off -0.05%.
NASDAQ Composite Index COMP fell 22 points to 3,706. Instead of the broad losses, ther are some gainers, which includes Pandora Media Inc (NYSE:P), eBay Inc (NASDAQ:EBAY) and Polycom Inc (NASDAQ:PLCM). Shares of Pandora Media Inc (NYSE:P) moved up 4.23%. eBay Inc (NASDAQ:EBAY) shares were up 1.59%. Polycom Inc (NASDAQ:PLCM) shares were up 8.29%. The shares of Polycom got a lift following videoconferencing technology company said that its board approved a $400 million stock repurchase plan that will be funded by $150 million in cash and $250 million in debt.