Apple is thought to be planning the release of two new phones on 10 September, including a much-anticipated cheaper iPhone, dubbed the iPhone 5C. As well as an incremental update to the current iPhone 5, expected to include fingerprint-detecting technology, the iPhone 5C would be Apple’s first lower-end phone. Historically, Apple has fulfilled the needs of the low-end market by offering previous years’ models at cut-down prices. Industry suppliers have been told to expect the new device in mid-September, but a leak to news site All Things D claimed the launch is set for 10 September.
At a recent earnings call, Apple’s chief executive Tim Cook reiterated that plan to investors. When asked about the potential of a low-cost iPhone to first time smartphone buyers, he replied that the number attracted by the iPhone 4 was “very, very impressive. We want to attract as many of these buyers as we can”.
He added that “where iPhone 5 continues to be the most popular iPhone by far, we are really happy to provide an incredible high-quality product with iPhone 4 running iOS 6 to as many first-time smartphone buyers as we can.”
However, there have long been hints that the company was considering going in a different route, perhaps modelled on the iPod product line. During an earlier call in January of this year, Cook pointed to the line as the model of how it thought about low-cost devices, saying: “I think we’ve had a great track record here on iPod, doing different products at different price points and getting a reasonable share from doing that.”
Each tier of iPod is a very different product from the others, to the extent that the iPod Shuffle and iPod Touch have barely anything in common. Apple may have switched gears due to a weakness in Chinese sales, or a move to unify the shape of the iPhone line. In July, Cook discussed the slowdown in China, but argued that it was “continuing to invest in distribution, we’re going to double the number of retail stores there for the next two years and we’re continuing to lift iPhone point of sales and iPad sales, both of which are currently lower than where we would want them or need them today”.
Additionally, there is a renewed impetus to unify the product line around the iPhone 5’s 16:9 screen, the biggest change in form factor since the original iPhone in 2007.
Technology analyst Benedict Evans of Enders Analysis argues that although “a cheaper iPhone has been discussed almost since the original launch in 2007”, costs have fallen and the market developed “to the point that it now makes sense for Apple to offer a $200-$300 [unsubsidised] model”. That change boils down to three things: for the first time, Apple could make such a phone (which would be $100 cheaper than an iPhone 4) without having to compromise its sense of design; the fact that the low end of the market in major territories is now big enough to take notice of; and the need for the company to have a critical mass of users to ensure that programmers still think of developing for iOS before competing platforms.
As with the iPhone 3GS and iPhone 4S, few extra features are expected for the new top-end iPhone. Instead, a speed boost and improved camera will likely be paired with exclusive software features. The major exception is the possibility of a fingerprint sensor mounted in the home button of the phone. Apple acquired fingerprint security firm AuthenTec last year, and the initial beta of iOS 7 contained settings for a sensor.
Apple did not respond to a request for comment.
Hi Good News, Apple has decided to launch iPhone in Pakistan by end of Nov'14
It was one of the best launches in the apple history I think. I still use it and don't want to change it for the new models.
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