Apple (NasdaqGS: AAPL) shares turned lower Tuesday afternoon after the tech giant wrapped up an event where it unveiled the latest iPhones.

The company unveiled the iPhone 5C, a cheaper version of its trademark mobile phone available in multiple color schemes, along with a high-end version known as the iPhone 5S, Reuters reports. Yet Apple shares were off nearly 2% in afternoon trading.

The iPhone 5S is likely a response to rivals like Samsung Electronics and Huawei Technologies in markets such as China and India where Apple is losing ground.

The cheaper iPhone 5C is expected to be within reach of less wealthy but quickly growing emerging economy consumers. Some observers, though, warn that the initial turnout could reduce margins and hurt branding for a company known for its premium users, Poornima Gupta for Reuters reports.

Nevertheless, Apple’s “fundamentals are strong, with room for double-digit revenue growth in FY 14 (Sept.) reflecting re-acceleration in iPhone and iPad revenues,” S&P Capital IQ Equity Analyst Scott Kessler said in a research note.

Apple shares gained slightly as the event kicked off Tuesday, but then fell into the red.

The Nasdaq-100 ETF PowerShares QQQ (NasdaqGM: QQQ), which has a 13.3% allocation toward AAPL, was up 0.4% during trading Tuesday. The fund also has large allocations toward other prominent tech names, like Microsoft (NasdaqGS: MSFT) and Google (NasdaqGS: GOOG).

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