Apple plays to the middle market with colourful iPhones

A play-safe appeal to Apple fans with a traditional, higher-specification upgrade.

Seasoned Apple watchers will have successfully predicted nearly all the hardware in the two new iPhones that have just been unveiled by CEO Tim Cook in a hotly anticipated presentation. But while one model conforms to the tried-and-tested tech upgrade trajectory we have seen in recent years, the other is a bit more of a mould-breaker – not least because it’s made largely out of plastic.

Sticking to the familiar two-year lifecycle in iPhone designs, Apple has upgraded the iPhone 5 to the 5S. This comes with a few hardware tweaks – most notably a significantly increased performance thanks to the newly developed A7 processor which is as powerful as that found in a desktop computer. It has tapped into the burgeoning market for health and fitness add-ons by including a distinct M7 chip, designed to efficiently (continuously) measure motion data. Until now, this had been a big drain on battery life.

The tradition of Apple bringing what were once expensive professional level features to the consumer market continues. Following on from face and voice recognition in iPhoto and Siri, we now have the introduction of a fingerprint reader on the phone. This combines high security with ease by allowing the phone to be unlocked with a single touch from the right person’s finger. Whether this is just a fad will be for the market to decide.

Security is at the forefront of many minds these days when it comes to technology purchases. Apple made no promises about stopping government security agencies from reading all your tweets and emails, but it has promised that fingerprints will not be stored on its databases, which should allay concerns about the NSA getting its hands on even more personal information about you.

The 5S also has a better camera lens, and flash and camera software are combined to offer better pictures, slo-mo video and better low light pictures. For a touch of glamour, you can get your 5S in gold as well as the traditional white and black.

But the foray into colour doesn’t end there. The iPhone 5C, announced alongside the 5S can be yours in green, yellow, blue, white or pink, if you’re willing to overlook the slightly odd Connect Four-style cutouts on the back of the case.

The iPhone 5C is significantly different. Some of the prestige hardware has been replaced with polycarbonate to cut costs so Apple can sell a 16GB version for $99 (although you’ll be locked into a two-year contract). Apple’s previous strategy entailed selling last year’s model at a cheaper price in order to maintain demand for the newer product. Whether there is a big enough differentiation between the 5C and the high-end product is difficult to predict, but the price tag suggests that they will sell.

Observers like to carry out “teardowns” of technology products to work out profit margins based on the cost of a device’s component parts. Teardowns of last year’s cheaper iPad mini seem to suggest that although profit margins may have been down on earlier models, Apple maintained its 50-58% margin on each device. It would be no surprise to discover that Apple has found a way to apply these manufacturing techniques in this cheaper iPhone while maintaining the same build quality and margins.

The 5C seems to be directly targeted at the midrange sector and emerging markets, which are currently dominated by Android phones. In a nod to the importance of emerging markets, Apple will release the new phones in China on 20 September, at the same time as launching them in the US and the UK, meaning Chinese Apple fans won’t have to wait any longer. That said, phones that have succeeded in the Chinese market before now typically have a wider screen size than Apple is offering.

Are the new features of the iPhone 5S enough to make it worth upgrading? If you currently have an iPhone 5 then probably not, although you could sell on your old device to offset the cost of switching. Many consumers will be coming out of an 18-24 month contract soon and may be sitting on iPhone 4 or 4S models – the longer screen, better battery life and camera may be enough of an inducement to switch to the new versions.

Alternatively, owners of iPhone 4 4S and 5 models have been promised an operating system upgrade at the end of this month, which will be like getting a new phone. This will be the first software that Johnny Ive has had a hand in designing following Apple’s reorganisation. The upgrade radically changes the interface, refreshes the apps and offers different features, something which has not occurred in any previous update. Anticipating that this degree of change may be a shock for some consumers, so Apple is reportedly prepping its online and instore support for those suffering from iOSTSD (iOS Traumatic Stress Disorder).

So, it’s nods to the middle and eyes to the East with the new iPhone launch but also a play-safe appeal to Apple fans with a traditional, higher-specification upgrade. Which version of the new iPhone is the bigger success may dictate future directions for the company.

Barry Avery does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.

The Conversation

This article was originally published at The Conversation. Read the original article.

Apple chief executive Tim Cook praises the new iPhone 5S as the most refined model the company has ever introduced. Photo: AFP/Getty Images
Barry Avery is a Principal Lecturer in Informatics and Operations at Kingston University.
Photo: Getty
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The government needs more on airports than just Chris Grayling's hunch

This disastrous plan to expand Heathrow will fail, vows Tom Brake. 

I ought to stop being surprised by Theresa May’s decision making. After all, in her short time as Prime Minister she has made a series of terrible decisions. First, we had Chief Buffoon, Boris Johnson appointed as Foreign Secretary to represent the United Kingdom around the world. Then May, announced full steam ahead with the most extreme version of Brexit, causing mass economic uncertainty before we’ve even begun negotiations with the EU. And now we have the announcement that expansion of Heathrow Airport, in the form of a third runway, will go ahead: a colossally expensive, environmentally disastrous, and ill-advised decision.

In the House of Commons on Tuesday, I asked Transport Secretary Chris Grayling why the government is “disregarding widespread hostility and bulldozing through a third runway, which will inflict crippling noise, significant climate change effects, health-damaging air pollution and catastrophic congestion on a million Londoners.” His response was nothing more than “because we don’t believe it’s going to do those things.”

I find this astonishing. It appears that the government is proceeding with a multi-billion pound project with Grayling’s beliefs as evidence. Why does the government believe that a country of our size should focus on one major airport in an already overcrowded South East? Germany has multiple major airports, Spain three, the French, Italians, and Japanese have at least two. And I find it astonishing that the government is paying such little heed to our legal and moral environmental obligations.

One of my first acts as an MP nineteen years ago was to set out the Liberal Democrat opposition to the expansion of Heathrow or any airport in southeast England. The United Kingdom has a huge imbalance between the London and the South East, and the rest of the country. This imbalance is a serious issue which our government must get to work remedying. Unfortunately, the expansion of Heathrow does just the opposite - it further concentrates government spending and private investment on this overcrowded corner of the country.

Transport for London estimates that to make the necessary upgrades to transport links around Heathrow will be £10-£20 billion pounds. Heathrow airport is reportedly willing to pay only £1billion of those costs. Without upgrades to the Tube and rail links, the impact on London’s already clogged roads will be substantial. Any diversion of investment from improving TfL’s wider network to lines serving Heathrow would be catastrophic for the capital. And it will not be welcomed by Londoners who already face a daily ordeal of crowded tubes and traffic-delayed buses. In the unlikely event that the government agrees to fund this shortfall, this would be salt in the wound for the South-West, the North, and other parts of the country already deprived of funding for improved rail and road links.

Increased congestion in the capital will not only raise the collective blood pressure of Londoners, but will have severe detrimental effects on our already dire levels of air pollution. During each of the last ten years, air pollution levels have been breached at multiple sites around Heathrow. While a large proportion of this air pollution is caused by surface transport serving Heathrow, a third more planes arriving and departing adds yet more particulates to the air. Even without expansion, it is imperative that we work out how to clean this toxic air. Barrelling ahead without doing so is irresponsible, doing nothing but harm our planet and shorten the lives of those living in west London.

We need an innovative, forward-looking strategy. We need to make transferring to a train to Cardiff after a flight from Dubai as straightforward and simple as transferring to another flight is now. We need to invest in better rail links so travelling by train to the centre of Glasgow or Edinburgh is quicker than flying. Expanding Heathrow means missing our climate change targets is a certainty; it makes life a misery for those who live around the airport and it diverts precious Government spending from other more worthy projects.

The Prime Minister would be wise to heed her own advice to the 2008 government and “recognise widespread hostility to Heathrow expansion.” The decision to build a third runway at Heathrow is the wrong one and if she refuses to U-turn she will soon discover the true extent of the opposition to these plans.

Tom Brake is the Liberal Democrat MP for Carshalton & Wallington.