Apple’s new iPhone Poised for record debut as global sales begin
New iPhones will start selling today in Australia, Japan, China, Hong Kong, Singapore, Germany, France, UK and US
First Published: Fri, Sep 20 2013. 08 51 AM IST
Opening-weekend sales are crucial to boosting Apple after nearly a year without releasing a new device and ceding market share to rivals including Samsung Electronics in the $280 billion smartphone market. Photo: Bloomberg
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San Francisco:
Apple
Inc. faced long lines of consumers at its retail stores on Friday for
the debut of its latest iPhones, in the company’s biggest move this year
to stoke new growth.
In Australia, where sales of the new iPhone 5S and 5C
kicked off first at 8am local time, more than 400 people were lined up
at the company’s outlet in Sydney’s central business district.
Australia was to be followed by iPhones going on sale in
Japan, China, Hong Kong, Singapore, Germany, France, UK and the US. It’s
the first time Apple is rolling out its flagship product for sale in
China on the same day as other main markets, as the company seeks to
lure new customers in the world’s largest mobile-phone market.
Opening-weekend sales are crucial to boosting Apple after
nearly a year without releasing a new device and ceding market share to
rivals including Samsung Electronics Co. Ltd
in the $280 billion smartphone market. Whether the Cupertino,
California-based company can surpass the record 5 million smartphones
sold during last year’s iPhone debut will largely depend on if there is
enough supply of the feature-rich iPhone 5S.
“It really depends entirely on how good or bad the yields
on the 5S are,” said Carl Howe, an analyst at Yankee Group, who
correctly predicted opening weekend sales last year. He said Apple could
top 7 million in sales if it has enough handsets, “though Apple may not
even hit the 5 million I predicted last year if the 5s is in really
short supply”.
Faster processor
Apple will sell as many as 6 million units even though it
won’t have enough iPhone 5S handsets available, according to Gene
Munster, an analyst at Piper Jaffray Cos. New fingerprint-reading
technology makes the gadget harder to manufacture, he said. Brian
Marshall, an analyst with ISI Group, also predicts 6 million iPhones
will be sold.
The iPhone 5S features a new camera and faster processor.
It costs $199 to $399 depending on the amount of memory and with a
two-year wireless contract. Without a contract, the smartphone costs at
least $649.
For the less-expensive iPhone 5C, Apple took last year’s
iPhone 5 and mostly repackaged it in a new plastic casing that’s offered
in five different colors. It costs $99 to $199 with a two-year
contract, or $549 without one.
Amy Bessette, a spokeswoman for Apple, declined to comment.
In some places, people started camping out in front of
Apple stores the night before in order to get the new iPhones, evoking
scenes from earlier product introductions—even though the gadget is now
six years old. Dozens of people gathered in front of Apple’s store near
the Paris Opera by 7:30pm on Thursday, prepared to stay overnight even
though the weather forecast was for rain. Some had blankets and campers’
chairs.
Fingerprint technology
Jimmy Gunawan was the only person in line at Apple’s
store on Sydney’s George Street when he arrived at midday on Thursday,
with others joining about three hours later. The 33-year-old freelance
film maker wanted the handset for its video functions, upgraded camera
and fingerprint technology.
“When I arrived I thought I would be further back but I
was the first,” said Gunawan, who bought two gold-coloured iPhone 5S,
one for himself and the other for his mother. “It’s not about having a
large screen or powerful hardware, its about the balance of everything.”
At Telstra Corp.’s Sydney store across the road from
Apple, about 50 people were lined up to buy the new handsets from
Australia’s largest carrier, which was providing free coffee and a disc
jockey for shoppers.
Increased competition
Every iPhone release is critical for Apple because the
product accounts for about half its revenue. Since the iPhone 5 started
selling last year, the company has faced increased competition from
rivals including Samsung, which has become the world’s largest maker of
smartphones by offering customers a wider variety of designs and prices.
Apple typically puts out a press release with opening-weekend sales figures on the Monday after the iPhone goes on sale.
How Apple performs in China is particularly important,
given the scale of the market there. Analysts have questioned whether
the price of the iPhone 5C—more than the equivalent of $700 because of
tariffs—will be too expensive for customers in China. In part because of
that, Apple shares have fallen 6% since the company announced the
iPhone pricing last week.
In addition to the new handsets, Apple also has
introduced a new mobile operating system, iOS 7, which was made
available to customers on 18 September. It includes a complete redesign
of applications like e-mail, calendar and photos, as well as new icons,
fonts and color scheme.
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