NEW YORK (Reuters) - Shares of Motorola Mobility fell about 5 percent on Monday on concerns it would be particularly vulnerable to competition from the next version of Apple Inc’s iPhone.
Motorola shares fell $1.44 or 4.6 percent at $29.71 on New York Stock Exchange after the Wall Street Journal reported Apple was developing a cheaper iPhone that is cheaper than its current model, the iPhone 4, and about half the size.
According to the story that cited unnamed people familiar with the matter the phone would also cost about half the price of today’s iPhone.
“Motorola has very high exposure to the North America phone market,” said MKM Partners analyst Tero Kuittinen. “If Apple brings out a cheap iPhone people are worried it’s going to hit Motorola more than others.”
Motorola Mobility, which was spun off from Motorola Inc on January 4, already faces new competition from Apple’s launch last week of an iPhone at Motorola customer Verizon Wireless, a venture of Verizon Communications and Vodafone.
Reporting by Sinead Carew; editing by Derek Caney