Apple shares dropped heavily after three major brokerage houses downgraded the stock. The stock was down by 5.5% at 12.55 PM EDT at $467. Bank of America, Credit Suisse Group and UBS AG downgraded the stock. Credit Suisse downgraded Apple Inc. from Outperform to Neutral. Bank of America also downgraded the stock to Neutral rating from Buy. The analysts were concerned about the performance of the company as the technology giant introduced iPhone 5C.

Apple iPhone 5C has been priced at $730 in China. The phone will cost $549 for entry level 16GB model. Apple will also discontinue iPhone 5. Analysts were expecting the company to reduce the price of iPhone by a much bigger figure. Android phones are having better sales in the smartphone market. With Microsoft buying Nokia, the software major is expected to increase its presence in mobile devices market.

Dow Jones Industrial Average was up by 0.6% at 15,281. Nasdaq Composite was down by 0.2% at 3722. Benchmark crude was higher by 55 cents to $107.94 per barrel.