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Wordwide Apples IPhone 5S and 5C Debut and Its Strategic Implications

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Albany, NY -- (SBWIRE) -- 04/29/2014 -- On September 10, 2013, Apple revealed two distinct iPhones, high-end 5S and cheaper 5C, at the same time during an event held at the company's US headquarters, breaking its one-a-year iPhone strategy.

In the face of the saturating smartphone market and dwindling growth momentum of the higher-priced smartphones, Apple this year has opted to change its product strategy. This report examines Apple's strategy shift and its implications for the company in terms of product deployment, partnerships and product pricing.

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Table of Contents

1.iPhone ASP Drops Significantly as Growth Momentum of High-end Smartphones Fades

2. Breaking One-a-year Strategy Aims for Profit Increase
2.1 Major Innovations in Hardware
2.2 Pricing Strategy

3. Placing Focus on the Asia Pacific Market to Claw Back Market Share6

Appendix

Table 1 Comparison of iPhone 5, 5S and 5C
Table 2 iPhone Price Variations Following the Launch of New iPhone, 2010 - 2013
Table 3 Estimated iPhone Price Variations if Standalone iPhone 5C is Priced at US$450
Table 4 Countries Included in the First Round Release of iPhones

Figure 1 Global Smartphone Shipment Share by Price Point, 2012 - 2013
Figure 2 Apple\'s Profit Margin, iPhone Shipment Volume and ASP, 1Q 2012 – 2Q 2013

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