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Apple yesterday unveiled two new iPhone models, the new flagship iPhone 5S and the lower-priced iPhone 5C, along with the improved iOS 7 mobile operating system. HIS has unpacked what it means for the immediate future of the brand.
“At an unsubsidised cost of $549, the iPhone 5C remains at the same price point as the existing mid-range model in Apple’s smartphone line, the iPhone 4S,” says Francis Sideco, director for consumer electronics and communications technologies at IHS.

“In light of this pricing, the 5C appears to be a mid-range product that cannot significantly expand the available market for the iPhone line to lower-income buyers. As a result, the arrival of the 5c will not spur a major increase in iPhone sales in the second half of 2013 compared to previous expectations.”

Based on an analysis of the announcement, IHS has chosen not to upgrade its forecast of overall Apple iPhone shipments in the second half. IHS at this time is maintaining its prediction of 86,1-million iPhone shipments in the second half, up 25% from 68,7-million in the first half and a 15% increase from 61,1-million in the first half of 2012.

“If Apple had hit a $350 to $400 unsubsidized price range for the iPhone 5C, as some had speculated, the company might have had a chance to expand its smartphone shipments beyond what we originally expected in the second half.

“Even at a subsidised price of $99 with a two-year contract, the 5C will not spur sales because it does not materially expand Apple’s addressable market past the level we had already taken into account.”