Apple launches two iPhones, targets wider market

The iPhone 5C and iPhone 5S will both run iOS7, a new version of Apple's mobile operating system

Apple iPhone 5C
Apple iPhone 5C
  • Apple iPhone 5C
  • Apple iPhone 5S
View all images

For the first time since it redefined the smartphone market in 2007 with the launch of the iPhone, Apple will sell two distinctly different versions of the handset intended to attract consumers in different markets.

"The iPhone 5 helped take our iPhone business to an entirely different level," said Tim Cook, Apple CEO, during a news conference on Tuesday. "In the past, when we have announced a new iPhone, we've lowered the price of the existing iPhone ... but this year we are not going to do that."

"The business has become so large that this year we are going to replace the iPhone 5 with not one but two designs," he said. "This allows us to serve even more customers."

The iPhone 5C is new, lower cost version of the iPhone most easily differentiated by its bright, colorful case. It's targeted at consumers in developed and developing markets that can't afford the $600 price of the conventional iPhone. In the U.S., the phone will cost between $99 and $199 on a two-year contract.

At the high end will be the iPhone 5S.

It's based on a new microprocessor developed by Apple called the A7. The 64-bit chip should offer a performance boost for users.

"We can use a new modern instruction set, a new Arm instruction set that is more efficient than the others use," said Phil Schiller, senior vice president of worldwide marketing at Apple. "The A7 is up to twice as fast."

The iSight camera is getting an upgrade in the iPhone 5S with a larger f2.2 lens and a slightly larger image sensor. There are new features, such as a burst mode and 120 frame-per-second slow-motion mode, and a new version of the photo software that will result in better pictures, said Schiller,

The third major update to the phone is the addition of a fingerprint sensor. It's intended to make the user's fingerprint the basis of security on the phone rather than a password. The sensor is imbedded into the home button under the screen, so users will just need to place their finger on the button to unlock the device.

Law enforcement officials in the U.S. have been increasingly critical of Apple and other smartphone makers for the lack of security features on their phones. They believe that more secure phones would reduce the incentive of criminals to steal phones, a fast growing area of crime in the U.S. and Europe.

The iPhone 5S will come in 16GB, 32GB and 64GB versions for between $199 and $399 with a standard two-year contract.

Both the iPhone 5C and iPhone 5S will go on sale on September 20 in the U.S., Australia, Canada, China, France, Germany, Japan, Singapore and the U.K. The iPhone 5C will be available for pre-order from Friday, September 13.

Both phones will run iOS7, the new version of Apple's mobile operating system. The OS will also be available as an update to iPhone 4 and later phones from September 18 at no cost, and that led Cook to make a prediction.

"iOS7 will quickly become the world's most popular mobile operating system," he said.

The operating system features a visual refresh with new icons, access to search throughout the phone, a drop-down notification page and an improved camera application, said Craig Federighi, Apple's senior vice president of Software Engineering.

Both the iPhone 5C and iPhone 5S will be important to Apple as it tries to shore-up and increase its share of the fast-growing smartphone market.

While the iPhone is often ranked as the best-selling smartphone, the large number of phones put on sale by competitors like Samsung are together attracting more customers. That means Apple's market share is falling.

In the April to June quarter, 31.2 million iPhone units were sold, up from 26 million in the same period of 2012, but despite the healthy rise the company's share dropped to 13.6 percent of the global market, down from 16.6 percent, according to Strategy Analytics.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

looking for the best quality of SMM Panel ( Social Media Marketing Panel ) is a website where People Buy Social Media Services Such as Fa...

Kavin kyzal

How to manage social media during Covid-19

Read more

Thank you for sharing your knowledge. Definitely bookmarked for future reading! Check this website https://a2designlab.com/ with lots of ...

Pierce Fabreverg

Study: Gen Z are huge opportunity for brands

Read more

Thanks for sharing. You might want to check this website https://lagimcardgame.com/. An up and coming strategic card game wherein the cha...

Pierce Fabreverg

Board games distributor partners with Deliveroo in business strategy pivot

Read more

Such an important campaign, dyslexia certainly need more awareness. Amazing to see the work Code Read is doing. On the same note we are a...

Hugo

New campaign aims to build understanding around scope and impact of dyslexia

Read more

Great Job on this article! It demonstrates how much creativity, strategy and effort actually goes to produce such unique logo and brandin...

Pierce Fabreverg

Does your brand need a personality review? - Brand vision - CMO Australia

Read more

Blog Posts

A few behavioural economics lesson to get your brand on top of the travel list

Understanding the core principles of Behavioural Economics will give players in the travel industry a major competitive advantage when restrictions lift and travellers begin to book again. And there are a few insights in here for the rest of the marketing community, too.

Dan Monheit

Co-founder, Hardhat

Predicting the Future: Marketing science or marketing myth?

Unicorns, the Sunken City of Atlantis, Zeus: They are very famous. So famous in fact, that we often think twice about whether they are real or not. Sometimes if we talk about something widely enough, and for long enough, even the strangest fiction can seem like fact. But ultimately it is still fiction - stories we make up and tell ourselves over and over until we believe.

Kathy Benson

Chief client officer, Ipsos

Winning means losing in the game of customer retention

At a time of uncertainty and economic hardship, customer retention takes on much greater importance. CX Lavender’s Linda O’Grady examines the big grey area between ‘all’ and ‘best’ customers when deciding who is worth fighting for and how.

Linda O'Grady

Data Strategy Partner & Business Partner, CX Lavender

Sign in