New Apple iPhone 5C and 5S

Here's the main story at NYT, "Apple Unveils Faster iPhone, and a Cheaper One, Too."

And check Daring Fireball, "Thoughts and Observations on Today’s iPhone 5C and 5S Introduction":

I got this one wrong.

I fixed my thinking by this week, but as of a month ago, I had it wrong when I wrote “The Case for a New Lower-Cost iPhone”.

Here’s the thing. The iPhone 5C has nothing to do with price. It probably does have something to do with manufacturing costs (which are lower for Apple), but not price. Apple’s years-long strategy hasn’t really changed. They offer three phones:

This year’s, with the latest technology.
Last years’s, starting $100 lower.
The two-year-old model, with meager storage, free on contract, $200 lower unsubsidized.

It’s just that instead of putting the year-old iPhone 5 in slot #2, they’ve created the 5C to debut in that slot. The 5C is, effectively, an iPhone 5. Same A6, same camera, same just about everything — except for the most obvious difference, its array of colorful plastic shells. This is not an iPod Touch with a cellular antenna (the iPod Touch, which was not updated today, still has an A5 chip and roughly 4S specs). The prices of the iPhone tiers remain the same as last year. What changes with the 5C is that the middle tier is suddenly more appealing, and has a brand of its own that Apple can promote apart from the flagship 5S.

In marketing, what looks new is new.

Yes, it’s plastic, but there’s nothing cheap about it. It has a far better fit and finish, and feels way better in your hand, than Apple’s previous foray into plastic iPhones, the 3G and 3GS. The 5C feels like a premium product.

This move is about establishing the iPhone as a two-sibling family, like how the MacBooks have both the Airs and the Pros. Think of the 5C as the Air, and the 5S as the Pro. Or iMac and Mac Pro. The iPhone is growing up as a product family.

This is the first year when last year’s specs remain good enough to serve as the mass market new iPhone. Take a look at apple.com today and note which new iPhone appears first: the 5C, not the 5S. Which phone did they show a commercial for during the event? The 5C. Part of this too is that the 5C is going to be available in greater numbers sooner. Apple is taking pre-orders for the 5C but not the 5S because, I have reason to believe, they expect the 5S to be in constrained supply. That’s not surprising — plastic is easier to manufacture than aluminum, and the 5C’s components are all a year old. And it makes sense to promote the phone that you can actually fulfill demand for.

Schiller repeated, almost mantra-like, that the 5S was Apple’s “most forward-thinking iPhone”. In his wrap-up, Tim Cook echoed that line. This isn’t about downplaying the 5S, but rather, I think, about establishing the 5S as the top tier in what is now a two-tier lineup. The Lexus to the 5C’s Toyota; the Banana Republic to the 5C’s Gap. (The 4S is Old Navy.) Soon enough, all iOS devices will have 64-bit CPUs, motion-tracking sub-systems, fingerprint sensors, and point-and-shoot caliber cameras. But you get those things first in the iPhone 5S.

Some other thoughts and hands-on experiences from today’s event...

Continue reading.

Well, markets are all meh.

At AllThingsD, "Apple Shares Down More Than Five Percent Following New iPhone Event."