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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Jeremy Corbyn sat down on train he claimed was full, Virgin says

The train company has pushed back against a viral video starring the Labour leader, in which he sat on the floor.

Seats were available on the train where Jeremy Corbyn was filmed sitting on the floor, Virgin Trains has said.

On 16 August, a freelance film-maker who has been following the Labour leader released a video which showed Corbyn talking about the problems of overcrowded trains.

“This is a problem that many passengers face every day, commuters and long-distance travellers. Today this train is completely ram-packed,” he said. Is it fair that I should upgrade my ticket whilst others who might not be able to afford such a luxury should have to sit on the floor? It’s their money I would be spending after all.”

Commentators quickly pointed out that he would not have been able to claim for a first-class upgrade, as expenses rules only permit standard-class travel. Also, campaign expenses cannot be claimed back from the taxpayer. 

Today, Virgin Trains released footage of the Labour leader walking past empty unreserved seats to film his video, which took half an hour, before walking back to take another unreserved seat.

"CCTV footage taken from the train on August 11 shows Mr Corbyn and his team walked past empty, unreserved seats in coach H before walking through the rest of the train to the far end, where his team sat on the floor and started filming.

"The same footage then shows Mr Corbyn returning to coach H and taking a seat there, with the help of the onboard crew, around 45 minutes into the journey and over two hours before the train reached Newcastle.

"Mr Corbyn’s team carried out their filming around 30 minutes into the journey. There were also additional empty seats on the train (the 11am departure from King’s Cross) which appear from CCTV to have been reserved but not taken, so they were also available for other passengers to sit on."

A Virgin spokesperson commented: “We have to take issue with the idea that Mr Corbyn wasn’t able to be seated on the service, as this clearly wasn’t the case.

A spokesman for the Corbyn campaign told BuzzFeed News that the footage was a “lie”, and that Corbyn had given up his seat for a woman to take his place, and that “other people” had also sat in the aisles.

Owen Smith, Corbyn's leadership rival, tried a joke:

But a passenger on the train supported Corbyn's version of events.

Both Virgin Trains and the Corbyn campaign have been contacted for further comment.

UPDATE 17:07

A spokesperson for the Jeremy for Labour campaign commented:

“When Jeremy boarded the train he was unable to find unreserved seats, so he sat with other passengers in the corridor who were also unable to find a seat. 

"Later in the journey, seats became available after a family were upgraded to first class, and Jeremy and the team he was travelling with were offered the seats by a very helpful member of staff.

"Passengers across Britain will have been in similar situations on overcrowded, expensive trains. That is why our policy to bring the trains back into public ownership, as part of a plan to rebuild and transform Britain, is so popular with passengers and rail workers.”

A few testimonies from passengers who had their photos taken with Corbyn on the floor can be found here