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iPhone 6: Price fears lead to shares downgrade

Rumours suggest iPhone 6 could launch in May, but talk of high cost hits Apple share price

APPLE will try to crack the "phablet" market by releasing a new iPhone with a five-inch screen as early as May next year, the tech website BGR reports - but analysts and investors have given the plans an unenthusiastic response.

The release of the jumbo iPhone 6 so soon after the debut of the iPhone 5s seems "improbable", BGR admits. But reliable sources in the company's supply chain say the device - which will be fitted with a 20 nanometer processor manufactured by Taiwan Semiconductor Manufacturing Company - is definitely on the way.
Concern about the cost of producing the new iPhone led analysts at Wells Fargo to downgrade Apple shares from "outperform" to "market perform" yesterday.