Apple Inc. (NASDAQ:AAPL)’s unveiling of the iPhone 5C, which was rumored to be the low-cost model, is sending shock waves throughout the industry. Nomura analysts have downgraded Flexium Interconnect Inc (TPE:6269) based on details about the new handset.

Apple iPhone 5C

Flexium’s share price affected by Apple

Analysts Eason Hung and Anne Lee issued a report explaining the effect Apple Inc. (NASDAQ:AAPL)’s iPhone 5C will have on Flexium. They think the company’s share price will be related to sell-through of the iPhone 5C over the next six to nine months. As a result, they expect volatility in the stock to increase, particularly because of capacity risk.

They downgraded Flexium Interconnect Inc (TPE:6269) to Neutral and have set their target price at TWD 113.

Apple’s iPhone 5C is just too expensive

Like analysts at numerous other firms, they also believe that Apple Inc. (NASDAQ:AAPL)’s iPhone 5C is priced too high, especially in the key Chinese market where it will retail for $735 unsubsidized. As a result, they said this “dampens” their hope that the iPhone 5C would enable Apple to expand its addressable market.

They don’t believe that sell-through of the iPhone 5C will go well, and as a result, they expect Flexium shares to struggle. They note that 60 to 70 percent of the company’s sales are to Apple Inc. (NASDAQ:AAPL) and that 80 to 90 percent of sales to Apple are for the iPhone.

Early iPhone 5C numbers?

What’s especially worrying to investors today is the fact that Apple is keeping quiet on preorders for the iPhone 5C. This is especially interesting because the company has released preorder numbers for the launches of its last three handset launches. However, some note that since this isn’t the flagship handset, the situation could be different than all the previous years. Apple Inc. (NASDAQ:AAPL) has decided not to take preorders for the iPhone 5S, but still, there’s speculation that reception of the less expensive handset is so bad that Apple might not want to share those numbers.