A Bit of Details
The pricier iPhone 5S would cost a buyer $199 with a contract. It comes in three color variations: gray, silver and gold. Other than having a faster processor, the iPhone sports a chip “M7 Motion co-processor” to track motion data without consuming much battery. The smartphone has a 64-bit chip embedded which is twice that of most smartphones, including iPhone 5. This will also make games and other applications run at a much faster speed. The phone runs on iOS 7 which will facilitate multi-tasking.
On the other hand, mid-ranged iPhone 5C, which starts at $99 with a contract, comes in multiple colors. It contains nearly all the features of iPhone 5, but has a plastic back case. The tech giant is therefore discontinuing the iPhone 5 as the company sees no reason to sell models with almost the same features. In fact, the presence of the iPhone 5 could trouble the marketing of the iPhone 5C. However, the iPhone 4 would still be available free of cost with the two-year agreement policy.
The iPhone 5C online sale will kick start on Friday, while the iPhone 5S would be available from September 20.
Clawing Back Market Share
iPhone 5C is a move that Apple made on purpose. The company is working to penetrate in the emerging market segments as well, where high-end premium phones may not be as popular as they are beyond the means of a large group. This is primarily where Samsung phones powered by Google (GOOG)'s Android has gained popularity by challenging Apple’s supremacy in the smartphone arena.
As it is pretty evident, the Cupertino giant is losing global market share to Samsung and Huawei Technologies. It became essential for the tech company to come with a cheaper variation of the iPhone to explore growing markets and regain market share where Samsung’s foothold is getting stronger.
Additionally, the tech giant is working on toughening its distribution network. There are speculations regarding Apple which says that the company is in talks to sign a distribution pact with China Mobile.
It is obvious that Apple must be compromising on profitability margins by selling the iPhone 5C so that it is able to attract buyers from the average income group. This is Apple’s first attempt at producing a cheaper phone with a plastic back. Several analysts are worried about the impact of iPhone 5C on the sale of iPhone 5S. New buyers could get attracted to buy the iPhone 5C instead of buying the pricier model.
Another area of concern that some industry observers have is that Apple has not come out with a different category of electronic device since Steve Jobs' iPad introduction in 2010. The company is rumored to be working on a smartwatch, similar to Samsung's recently released Galaxy Gear, or the highly anticipated Apple’s iTV. All this remains to be seen.
However, it would be interesting to see how Apple fairs in the eyes of its fans with these latest iPhone models. And as far as innovation is concerned, Apple is said to be coming out with smart devices in times to come. The tech giant is known for thinking different.