Apple introduced two new iPhones on Tuesday (September 10), the iPhone 5S and the iPhone 5C that comes in five colours and starts at $99 (£62) with a contract, priced to bring one of the industry's costliest smartphones within reach of the masses in poorer emerging markets.
The iPhone 5C comes in five colours -- blue, green, pink, yellow and white -- and starts at $99 with a contract. U.S. phones are also available for $549 (£349) without a contract, a higher-than-expected price that is important because many emerging markets sell such so-called 'unlocked' phones. Actual prices in emerging markets have not been disclosed.
The pricier 5S begins at $129 with a contract and also comes in three colours - grey, silver and gold - and sports expected improvements in processor speed, an improved camera along with a fingerprint-scanner that can unlock the phone with just a touch. Apart from a more powerful processor than in the 5C, it embraces other cutting-edge features such as a dedicated "M7 Motion co-processor" chip, which can track motion data continuously without heavily draining the battery. The chip opens the door for the iPhone to better track sports and fitness-related user activity.
The world's most valuable technology company is trying to beat back rivals like Samsung and Huawei in markets like India and China, where it is quickly losing ground.
Wall Street approves of the move to offer a more basic version of the device, although some investors warned initially that it would reduce margins and potentially tarnish a brand that has been linked to premium users since its 2007 inception.
Now they hope a bigger emerging-market presence can help reverse a 29 percent fall in the company's share price since it hit a record high of $702.10 a year ago. The sell-off was fuelled by fears of slowing growth and a perception that Apple's ability to innovate and shake up industries was dwindling.
The new iPhones, coupled with a belief that Apple will announce a deal with the world's largest carrier in China, have spurred investors to build bullish share and options positions in the company over the past two weeks.
Presented by Adam Justice