Apple Event Part II - iPhone 5S and 5C

The Apple Keynote is in the books and here are the major findings around the iPhone. As expected we have a new iPhone and a 2nd new iPhone.  No surprises today.  The famed Apple secrecy has become a leaking ship.  Everyone around the world knows everything well before the event and the purpose is now merely confirmation.

For this year's event I followed the CNet live blog.
http://news.cnet.com/

On with the findings:

1.) International Efforts
2.) Mobile Gaming
3.) Mobile Motion Sensing
4.) Fingerprint Identification

Apple is really emphasizing the international footprint of the iPhone especially China.

First the major update to the iPhone:

iPhone 5S

16GB at $199. 32GB at $299 and 64GB at $399. Yes, on-contract.  Available Sept 20.Now comes in three colors: "Space Gray" replaces Black, White and Champagne/Gold (in the middle).

Some features: 

Open GL for game processing.  Really impressive graphics capability.  Likely as good as the XBox 360 or PS3.

Big internal re-work.  The M7 chip next to the A7 64 bit processor.  The big news appears to be the A7 and 64 bit processing, the first ever for mobile.  However the M7 may be the bigger story.  This has significant motion sensing capability.  Your iPhone will know if you are walking, sitting, riding a bike, or in a car.  Fitness apps will have a great new toy to play with.  Is Apple providing this in the iPhone to help them figure out what an iWatch should do for customers?  Combine that with the fingerprint ID (next topic) for mobile payments and you have an interesting mobile/wearable device capability being built out.

Touch ID fingerprint reader.  Built in to the home button with no apparent change to the button.  All behind the scenes.  Just tap the home button to unlock your phone and the fingerprint sensor does it all.  No more swiping to unlock your iPhone.  Can also use Touch ID for iTunes purchases (think mobile payments processing is on the way?).

Next is an improved camera.  This keynote heavily emphasized the camera, a major request from customers and an opportunity for competitors such as Nokia. This has steadily improved with each iteration of the iPhone.

iOS 7 is also big news though this was announced quite some time ago.

Big news is once again not a surprise: no NFC or Near Field Communications.  Mobile payments continues to be something Apple doesn't want to make in to a hardware offering.  The ISIS type offerings of the world can beat the drum as much as they want but if Apple doesn't come onboard with the iPhone it isn't going to succeed in the United States.

Now on to the low-end phone.  The first ever offering of a less expensive iPhone.

iPhone 5C

Multi-colored phones with a plastic case instead of the more expensive metal offering.  Also has colorful slip cases as an option to combine in creative ways.  Definitely a low-end offering and definitely created to help Apple overseas and to improve the company's profit margins.  This is essentially the iPhone 5 with a plastic case available in multiple colors.

$99 for 16GB and $199 for 32GB with contract available for pre-order on Sept 13 and available the 20th

iPhone 4S

Final offering available.  Only the 8GB but for free with contract.  The lowest of the low-end from Apple and certain to be phased out with the iPhone 6 next year.

That about wraps it up.  Certainly is an evolutionary announcement.  I continue to feel Apple may be at the peak of the Innovator's Dilemma, solely focused on harvesting from their established market share rather than taking chances to innovate.  This provides an opening for other companies to leapfrog Apple.  Samsung wants to be that company.  Can they?

Have a great day,

J.W. Gant

Note: Corrected the statement that a black iPhone 5S would be offered.  It is "Space Gray", a new color, alongside the new Champagne Gold.

**UPDATE**

One good article on Bloomberg analyzes the new features on the 5S.  Good read.

apple-seen-seeding-future-wearable-products-in-iphone

Enjoy.