Summary: Compared to its rivals' offerings, the new iPhone targeting emerging
markets is a "disappointment" for consumers in developing markets such
as China and India, and Apple is losing its "wow factor".
The iPhone 5c is not cheap enough to attract consumers in emerging
Asia-Pacific markets, especially with the lack of reliable 3G and 4G
networks in the region, while the incremental improvements in the iPhone
5s do not appeal to customers of the developed markets.
According to Phil Harpur, senior research manager of Frost & Sullivan's ICT practice, the iPhone 5c is a "disappointment" for emerging markets in the region such
as China and India. These markets are price-sensitive and look for
cheaper options, and this does not fit with Apple's brand, Harpur said,
speaking to ZDNet Asia in an interview following the iPhone launch on
Wednesday.
Apple unveiled the iPhone 5s, its lower end iPhone 5c, as well as the latest version of its mobile platform iOS7. With a 2-year telco service contract, the iPhone 5s 16GB model costs US$199, while the 32GB is priced at US$299 (32GB), and the 64GB is US$399. The iPhone 5c 16GB model costs US$99, while the 32GB model is priced at US$199.
Within Asia, the new iPhone 5s will be available in Japan, China, Hong Kong, and Singapore from September 20, 2013.
Harpur pointed out that the lack of reliable 3G and 4G networks in
emerging Asian markets also made it less compelling for consumers to pay
a premium price for smartphones.
It is becoming difficult for Apple to have any real competitive
advantages, he said, adding that rivals such as Samsung, HTC, and LG all
offer smartphone models at lower pricepoints and which are taking off
in emerging Asia-Pacific countries.
In markets that are less price-sensitive such as Singapore, Australia,
and New Zealand, while the price tag does not make the latest iPhones
less attractive, the new smartphone models do not have anything new to
offer the market, Harpur pointed out.
Even though the iPhone 5c is slightly more price-competitive, there is a
lack of innovation so it is "equally disappointing" to developed
markets in the region, he said.
Singapore-based engineer Shawn Lee, too, told ZDNet Asia the incremental
changes in iPhone 5S were expected, apart from the fingerprint sensor
and large-camera sensor, and hopes iPhone 6 will come with more major
changes.
"Apple is already pretty far down the path of incremental improvements.
They seem to be losing the innovativeness and the 'wow' factor that was
key to their rise," Lee said.
"There's no denying Apple takes the cake in industrial and product
design, but I'm an advocate of change and the lack of change in Apple's
design is a turn-off for me," said the engineer, who is a Samsung
smartphone user. "The iPhone 5s looks good but boring after being in the
market for so long. And even though the iPhone 5c adds color, it sticks
to the same design language."
Higher security could offer enterprise potential
However, the iPhone 5s offers increased security which can offer enterprise potential,
observed Carolina Milanesi, Gartner's research vice president of
consumer technologies and markets, referring to the new biometric
function as an example.
Jan Dawson, chief telecoms analyst of devices and platforms at Ovum,
added that the new fingerprint scanner should make the device more
appealing as it marked the first time a big-selling device offers such a
feature.
However, overall, there are no other features that make the phone better
or more attractive than its predecessor the iPhone 5, especially when
BYOD and the use of high-end devices already have been generally
accepted by most organizations, Harpur pointed out.
Consumers unimpressed, unwilling to switch
Consumers with Android devices and older generations of the iPhone told
ZDNet Asia they had no plans to switch over to the iPhone 5s or 5c.
Lin Surong, who currently owns a HTC phone, said while the iPhone does
not become laggy after prolong use, it still has features that "irk
[her] as a consumer" such as the non-expandable storage and built-in
internal battery. And she is not impressed by the fingerprint sensor,
which she described as "dodgy" since such features often do not work
properly on laptops that offer them.
Lee added he would not switch over to iOS as he liked the customization and open source nature of Android.
Peace Chiu, an iPhone 5 user,
too noted that while Apple made an effort to make iPhone 5s more
visually appealing and added features such as the fingerprint scanner,
she would not be considering an upgrade. "I don't think it's enough to
convince me to switch to iPhone 5s since I find my current phone
adequate. The switching process tends to be quite troublesome as well,"
Chiu said.
Joey Chapman, another iPhone 4 user, added the changes to iPhone 5s and
5c were insignificant and her current phone still works well.
"It [also] looks like a phone for kids because of the stupid colors," Chapman said.
~ Ellyne Phneah
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