$99 iPhone, ‘gold’ model unveiled

Apple rolls out low-cost phone for emerging markets

Tim Cook, chief executive officer of Apple Inc., describes the new iPhone 5C on Tuesday at a product-introduction event in Cupertino, Calif.
Tim Cook, chief executive officer of Apple Inc., describes the new iPhone 5C on Tuesday at a product-introduction event in Cupertino, Calif.

CUPERTINO, Calif. - Apple’s latest iPhones will come in a bevy of colors and two distinct designs, one made of plastic and the other that aims to be “the gold standard of smartphones” and reads your fingerprint.

Apple unveiled the latest iPhone models during an event at its Cupertino, Calif., headquarters. The move comes as rival phones from Samsung and other manufacturers are challenging Apple’s hold on the smartphone market.

The iPhone 5C will be available in five colors - green, blue, yellow, pink and white. Chief Executive Officer Tim Cook calls it “more fun and colorful” than any other iPhone. The 5C has a 4-inch Retina display and is powered by Apple’s A6 chip. It also has an 8-megapixel camera, live photo filters and a rear cover that lights up.

The iPhone 5C will cost $99 for a 16GB model and $199 for a 32GB model with a two-year wireless contract. The phone is expected to help Apple increase sales in China and other areas where people don’t have as much money to spend on new gadgets as they do in the U.S. and Europe.

The second phone, the 5S, is “the most forward-looking phone we have ever created,” said Phil Schiller, senior vice president of worldwide marketing at Apple. It will come in silver, gold and “space gray” and run a new chip, the A7, that is up to twice as fast as the A6. Prices start at $199 for a 16GB model.

Both iPhones will be available in the United States, Japan, China and other countries Sept. 20.

“The business has become so large,” Cook said. “We’re going to replace it with no tone, but two new designs.”

Until now, Apple only released one new iPhone model per year. But as competing devices running Google Inc.’s Android software gain popularity in the $280 billion smartphone market, Apple is expanding its iPhone lineup to reach more customers.

“The competition has caught up, and it’s now purely about how quickly it can innovate and drive its own experience forward,” said Benedict Evans, an analyst with Enders Analysis in London.

Schiller said the new phone can run more health and-fitness applications.

The apps have become increasingly popular as more people use them to track exercise routines, calorie intake and even sleep patterns.

The camera in the 5S received some major upgrades, including several automatic features designed to produce better photos. It has larger pixels, which helps capture more light.

The phone also has a two tone flash feature that is designed not to clash with the colors in the room or a person’s skin color - something Schiller said has not been done on a phone before.

The camera, called iSight, has “auto image stabilization,” which helps avoid blurry pictures, and a slow-motion camera for video.

The 5S also includes “Touch ID,” which reads fingerprints at a “detailed level,” Schiller said. He said it is “fun and easy” to teach the 5S about your fingerprint and once you do, you can just touch the home button to unlock the phone.

Tying the fingerprint scanner to payments could also open new revenue channels for Apple.

Apple also said its next mobile operating system, iOS 7, will be available as a free download Sept 18.

Craig Federighi, head of software at Apple Inc., said “downloading iOS 7 is like getting an all-new device.” Cook predicted that iOS 7 will become the most popular mobile operating system in the world.

The new system can be downloaded on the iPhone 4 and later models, as well as on tablets beginning with the iPad 2.

Apple also said it expects to ship its 700 millionth iOS device next month.

The announcement did little to sway investors, as Apple’s stock price fell $11.53 to close Tuesday at $594.64.

Information for this article was contributed by Adam Satariano and Peter Burrows of Bloomberg News.

Business, Pages 27 on 09/11/2013

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