Golden delicious

By Ben Walsh
September 10, 2013

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Apple has decided that there can, in fact, be more than one. The company announced today it is releasing two new iPhone designs: the iPhone 5S and the 5C.

The 5C starts at $99, with contract. In another first for Apple, the 5C comes swathed in variable shades of high molecular mass petrochemical polymers (aka plastic). The more expensive 5S, which starts at $199 with contract, also breaks new visual ground by coming in a golden, vaguely champagney color last seen in mid-1990s Mercedes sedans.

In terms of specs, the Verge has great rundowns of both the 5C and the 5S. In short, the 5C is “essentially an iPhone 5 inside a colored plastic shell with an improved front-facing camera and improved battery size”. The 5S has a faster processor, improved camera, and “an integrated fingerprint sensor in the new sapphire home button”.

Apple, says Horace Dediu, is broadening its portfolio to catch up in a segment of the market it has so far consciously avoided. “I think a lot of the momentum that has been lost in the past year in terms of sales growth has been because of the lack of low end”. The now-outdated 4S will be offered free with a two-year contractNeil Irwin thinks that Apple aims “to compete with cheaper competitors among the cash-strapped around the world”.

Despite being dubbed the cheap iPhone, Christopher Mims has doubts about the viability of the 5C in emerging markets:

Since most phones in emerging markets are sold without the subsidy that comes with a monthly plan, people must pay the full cost of a phone upfront. At $549 even for the base model, the iPhone 5C remains a luxury item in China and other emerging markets.

Matt Lynley concurs, and notes that “Apple executives… basically skipped mentioning the unsubsidized pricing” at the unveiling. Apple CEO Tim Cook also offered up a chart of cumulative iPhone sales, which looks extremely impressive. However, iPhone sales, David Yanofsky notes, have declined each of the last three quarters (albeit, after a multi-year run of growth).

All Things D’s John Paczkowski nicely summed up Cook’s response to worries that Apple’s cheaper iPhone would cut into its own sales: “Apple doesn’t much care about cannibalization as long as it’s another Apple product that’s doing the cannibalizing”.

On that note, one product that isn’t going away is the world’s most meticulously designed, music-playing external hard-drive: the iPod Classic. — Ben Walsh

On to today’s links:

Crisis Retro
The financial crisis’s most notorious CEOs are doing just fine – Center for Public Integrity
Five years after the crisis, banks are still too big, too opaque, and too interconnected – Bloomberg

Awesome
The best thing you’ll read on the Bloomberg Era in New York City – Choire Sicha

UGH    
“A homeowner’s worst nightmare”: The maintenance firms that torment struggling homeowners – DealBook
Business Insider’s CTO is your new least favorite person - Valleywag

New Normal    
Banks are starting to warn about the impact of rising interest rates and cutting jobs – WSJ

Servicey
The five cognitive distortions of people who get stuff done – Kottke

TBTF
Citadel CEO Ken Griffin wants to break up big banks – FT

Oxpeckers
A reminder that journalists rarely, if ever, verify financial stats on private companies – Francine McKenna

Alpha
Landlords who reap millions housing the homeless are backing De Blasio for NYC mayor – NYMag
The Dow is “a small batch artisanal stock index” that we should mostly ignore – Matt Yglesias

Popular Myths
Eating breakfast doesn’t help you lose weight – NYT

Pivots
Morgan Stanley’s transformation: trying to be a safer investment bank – WSJ

Wonks
Mormons go Keynesian – Real Clear Religion

Transparency
Some very basic questions for Green Mountain Coffee’s management – Jesse Eisinger

Felix
Why the Supreme Court should accept the Elliott v Argentina case – Reuters

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