The share prices of component suppliers for the iconic Apple iPhone from Japan fell as concerns about the steep price of the so-called lower-priced iPhone would still make it out of the reach of its target market. This would mean it would be too expensive for the emerging markets in Asia and would result in margins being clipped. 

According to a senior dealer at a foreign bank located in Tokyo, "In terms of components, it's still a volume game with low margins, It's not a huge positive for component makers."

The component makers affected are Taiyo Yuden Co Ltd, Ibiden Co Ltd and Murata Manufacturing Co Ltd, whose stocks fell between 1.4% and 2.9%. The other suppliers threatened were Japan Aviation Electronics Industry Ltd, Mitsumi Electric Co Ltd, Minebea Co Ltd and Nidec Corp fell between 1.6% and 3.3%. 

This observation though was not shared by another trader, He said "It's not negative for the component makers because it's about volume. If anything, it is positive for component makers because you are now arguably going to be selling even more iPhones."

"The potential you've got here is not that you are going to be selling fewer iPhone 5s... What you are doing here is attacking a brand new market. Now they have come up with a mid-range phone because there is a huge market for entry level smartphones," according to the same trader.