December 7, 2013
Apple takes wraps off cheaper, multi-hued iPhone 5C
Apple Inc introduced two new iPhones today including the "iPhone 5C" that comes in five colors and starts at $99 with a contract, priced to bring one of the industry's costliest smartphones within reach of the masses in poorer emerging markets.
Chief Executive Tim Cook kicked off the event at the company's Cupertino headquarters which also ushered in the pricier iPhone 5S. Shares in Apple, which had been in negative territory most of the morning, briefly went positive and were down just 0.5 percent at $503.48.
Cook expects Apple to ship the 700 millionth device - an iPhone or iPad - based on iOS mobile software sometime next month.
The world's most valuable technology company is trying to beat back rivals like Samsung Electronics Co Ltd and Huawei Technologies Co Ltd in markets like India and China, where it is quickly losing ground.
Wall Street approves of the move to offer a more basic version of the device, although some investors warned initially that it would reduce margins and potentially tarnish a brand that has been linked to premium users since its 2007 inception.
Now they hope a bigger emerging-market presence can help reverse a 29 percent fall in the company's share price since it hit a record high of $702.10 a year ago. The selloff was fueled by fears of slowing growth and a perception that Apple's ability to innovate and shake up industries was dwindling.
The new iPhones, coupled with a belief that Apple will announce a deal with the world's largest carrier in China, have spurred investors to build bullish share and options positions in the company over the past two weeks.