iPhone 5C and 5S announcement: Analysys Mason

ENGLAND, UK: Apple announcements are the result of Apple experiencing stronger competition in the upper-end of the smartphone market. Analysys Mason principal analyst, Ronan de Renesse comments:

"The iPhone 5 was not competitive enough to sustain high sales numbers after the launch of the iPhone 5S, in the same way as the iPhone 4/4S combination beautifully expanded the iPhone's addressable base. The iPhone 5C is better designed to complement the iPhone 5S and address competition from the likes of Nokia, Samsung and HTC in the upper-mid smartphone segment.

"Despite little differences in the exterior design compared to the iPhone 5, the iPhone 5S will offer sufficient differentiation via iOS7, its 64-bit A7 processor, a better camera and Touch ID to guarantee significant sales numbers.

"This is the biggest-scale launch Apple has ever attempted for the iPhone. The inclusion of China from day one and a total of 100 countries by December 2013 is set to boost demand for iPhone 5S and 5C to unprecedented levels, putting significant pressure on the supply chain. Analysys Mason expects a consumer demand of over 200m smartphones in China in 2013, nearly as much as North America and Europe combined.

"Once again, Apple has proved to be a strong innovator in the smartphone space with Touch ID. Fingerprint-based identification technology is likely to be introduced by other manufacturers in the near-future and may catch-on as a mode of payment elsewhere as a result."