Apple investor reaction muted on iPhone 5c and iPhone 5s
“Apple is releasing two new iPhones this month instead of just one, including a cheaper model aimed at less wealthy countries where new Apple phones have been desired but out of reach because of their price,” Brian X. Chen reports for The New York Times.
“The lower-cost model, the iPhone 5C (the ‘C’ for color) comes in a plastic case and has the same features as the now-outdated iPhone 5. The fancier model, the iPhone 5S, comes in aluminum and includes a faster processor and fingerprint sensor for security, among other features,” Chen reports. “The iPhone 5S costs $200 with a contract, and the iPhone 5C costs $100 with a contract.”
Chen reports, “Philip W. Schiller, Apple’s senior vice president of worldwide marketing. said the new phone was ‘more colorful than anything we’ve made before.'”
MacDailyNews Take: Yeah, um:
Apple’s “Flower Power” (left) and “Dalmatian” iMacs
“Both iPhones will be available in the United States, Japan and China and other countries on Sept. 20. Apple announced a partnership with NTT Docomo of Japan, but not a highly anticipated partnership with China Mobile, the biggest carrier in China. It will be the first time Apple has been able to release its phones at the same time globally,” Chen reports. “Investor reaction was muted. Apple’s stock price finished the day down about 2.3 percent.”
“With its profit growth slowing, and smartphone sales surging in countries like China, India and Russia, the cheaper iPhone is targeted at what analysts call ‘aspirational consumers’ in those countries — the top 10 to 20 percent who are slightly uncomfortable about spending more money on a fancy brand, but might be convinced at the right price,” Chen reports. “Apple was careful to not make the iPhone 5C sound cheap. It emphasized that many key parts were made of a high-quality polycarbonate material, and underneath the plastic is steel reinforcement. And Apple added networking parts that make the phone compatible with global cellular networks.”
Chen reports, “At full price without a contract, which is how many overseas carriers make people pay for phones, the iPhone 5C costs $550 — only $100 less than the iPhone 5S. That is far higher than the $300 to $400 range that many analysts expected.”
