Apple Unveils Two New iPhonesAssociation of Business Training
September 11, 2013 — 845 views
After many months of speculation over the launch of the latest iPhones from Apple, the company has finally released two models – iPhone 5C and iPhone 5S. Apple has taken a bold step by introducing the two new phones at a much lower price than expected with the iPhone 5C being priced at $99 and the iPhone 5S priced at $199. Apple has also decided to release the iPhone 5C with five different color options and the iPhone 5S with three color options which includes the much-anticipated gold color.
Change in Strategy
Apple has dominated the smartphone market for the past five years and it looks to compete with the Android phones by offering customers a different phone with color options. This was not the initial strategy that Apple had a couple of years back as they were releasing only one model per year. In order to be more competitive in the $280 billion smartphone market, Apple has decided to sell at least two to three models per year as way of getting more customers to buy their products. Plus the new iPhones are at a much lower price in comparison to their flagship phone – iPhone 5.
How the Market has Reacted
Although this particular launch of the iPhone 5C and 5S has gelled well with the customers, the stockholders have not taken to well with these releases. After the announcement was made, the stocks of Apple dropped about 2.3% with the share price closing at $494.64. This was mainly due to the fact that this launch was more anticipated than the previous launches for the iPhone as many videos and photos of the latest models had leaked on to the internet over the past few months. One of the main concerns for shareholders is with regard to Apple's pricing strategy of the latest models. Although the analysts at Apple believe that they are willing to walk the fine line between growth and profitability, shareholders are more worried about the plan backfiring.
What can the Customer Expect?
The iPhone 5C will come with a 4-inch screen and a plastic casing with color options that include white, pink, yellow, blue and green. The iPhone 5S however, will come with newer features that include a 64-bit chip that will make this particular model twice as fast as the iPhone 5. The phone will also have a Touch ID fingerprint-sensor on the home button which will allow customers to confirm purchases on iTunes and unlock the phone.