Apple unveils 2 new iPhones including cheaper model

Apple unveils 2 new iPhones including cheaper model

New phones available in Canada Sept. 20

The Associated Press, September 10, 2013

Tim Cook, CEO of Apple, spoke on stage during the introduction of the new
iPhone 5s, which features a new chip, the A7, that is up to twice as fast as
the
A6; an upgraded camera; and a fingerprint scanner. ((Marcio Jose
Sanchez/Associated Press))

For the first time since introducing the device that changed cellphones
forever, Apple will offer two distinct versions of the latest iPhones – a
cheaper one made of plastic and another that aims to be “the gold standard
of
smartphones” and reads your fingerprint.

Apple unveiled the latest iPhone models, available on Sept. 20 in Canada,
during an event at its Cupertino, Calif., headquarters. The move comes as
the company
tries to fend off Samsung and other competitors that want to challenge Apple
in the competitive smartphone market. The lower-cost iPhone 5C is expected
to help
boost sales in China and other areas where people don’t have as much money
to spend on new gadgets as they do in North America and Europe.
The iPhone 5C will be available in five colours – green, blue, yellow, pink
and white. (Stephen Lam/Reuters)Research firm Gartner Inc. estimates that
Apple had
a 14.4 per cent share of the world’s smartphone market in the second quarter
of this year, No. 2 behind Samsung’s 31.7 per cent.

The lower-cost iPhone 5C will be available in five colours – green, blue,
yellow, pink and white. CEO Tim Cook calls it “more fun and colorful” than
any other iPhone. The 5C has a 10-centimetre Retina display and is powered
by
Apple’s A6 chip. It also has an 8-megapixel camera, live photo filters and a
rear cover that lights up.

In the U.S., the iPhone 5C will cost $99 US for a 16 gigabyte model and $199
US for a 32 gigabyte model with a two-year wireless contract. Canadian
pricing with
a contract is not yet available but without a contract the phone starts at
$599.

Price is the key
The greatest significance of today’s iPhone launch was the price of the
product, according to IDC analyst Kevin Restivo.
“Even Apple, the premium priced phone-seller in the world has decided to go
downscale, just a little,” he said in an interview with CBC’s Lang & O’Leary

Exchange.
“Apple is trying to appeal to mobile users in countries like China, Brazil,
Russia, Pakistan, large populous nations where the smartphone market the
growth
rate is really just starting to take off,” he added.

Restivo says there is still room for Apple to capture the emerging markets.
“I suspect as component prices fall and Apple tries to address part of the
market it doesn’t yet address, we’ll see a cheaper iPhone,” he
said.Jefferies
analyst Peter Misek called the phones “lovely,” but said in a note to
investors that the $99 minimum price for the 5C is “is higher than expected
and still
leaves Apple with a product gap in the low-end.”

New A7 chip
The second phone, the 5S, is “the most forward-looking phone we have ever
created,” said Phil Schiller, senior vice-president of worldwide marketing
at
Apple. It will come in silver, gold and “space grey” and run a new chip, the
A7 that is up to twice as fast as the A6.
For buyers entering a two-year contract with a wireless carrier in the U.S.,
the the 5S will cost $199 US for 16 gigabytes of memory, $299 US for 32 and
$399 US for 64. Canadian prices with a contract have not been released but
without a
contract the phone starts at $719.

Schiller said the new phone can run more health and fitness applications.
These
apps have become increasingly popular as more people use them to track
exercise routines, calorie intake and even sleep patterns.

The camera in the 5S received some major upgrades, including several
automatic features designed to produce better photos. It has a larger pixels
and a larger
aperture, which helps capture more light. The phone also has a “true-tone”
flash feature that is designed not to clash with the colours in the room or
a person’s skin colour – something Schiller said has not been done on a
phone before.
The camera, called iSight, has “auto image stabilization,” which helps avoid
blurry pictures, and a slow-motion camera for video. A “burst mode” can take
10
frames per second as long as you hold your finger on the shutter, then find
the best one in your camera roll.

Fingerprint scanner
The 5S also includes “Touch ID,” which reads fingerprints at a “detailed
level,” Schiller said. He said it is “fun and easy” to teach the 5S about
your
fingerprint and once you do, you can just touch the home button to unlock
the phone. The company said fingerprints will not be stored on its servers.

Tying the fingerprint scanner to payments could also open new revenue
channels for Apple.
Both models will be on sale on Sept. 20 in the U.S., Australia, China,
Canada, France, Germany, Japan, Singapore and U.K. Apple said this is the
first time
that a new phone has been available right away in China – a sign of the
growing importance of that market to the company. People will be able to
order the 5C in
advance on Friday, but not the 5S.

Apple also said its next mobile operating system, iOS 7, will be available
as a free download on Sept. 18.

7 top changes in Apple’s new iOS 7 operating system
Craig Federighi, head of software at Apple Inc., said at an event at the
company’s Cupertino, Calif., headquarters that “downloading iOS 7 is like
getting an all new device.”
The new system can be downloaded on the iPhone 4 and later models, as well
as on the tablets beginning with the iPad 2.

Apple also said that it expects to ship its 700 millionth iOS device next
month.
Apple CEO Tim Cook predicts that iOS 7 will become the most popular mobile
operating system in the world.

Investors seemed unimpressed. Apple’s stock price fell $11.60, or 2.3 per
cent to close Tuesday’s trading at $494.58.

The Associated Press, 2013

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