News / Economy

Throngs Greet Apple's Newest iPhones, Gold Color Sells Out

Apple's new iPhone 5S is displayed at an Apple shop in Tokyo's Ginza shopping district, Japan, Sept. 20, 2013.
Apple's new iPhone 5S is displayed at an Apple shop in Tokyo's Ginza shopping district, Japan, Sept. 20, 2013.
Reuters
Thousands of iPhone enthusiasts queued up at Apple Inc stores around the world on Friday as two new models of the smartphone went on sale, but Apple's shares ended slightly lower as investors wait for initial sales figures, due as early as next week.
    
Long lines formed outside stores in Sydney, Tokyo, New York, San Francisco and other cities as Apple broke with tradition and launched two iPhone models - the new top-of-the-line 5S and the less-expensive 5C - on the same day.
    
Apple watchers said early signs pointed to more demand for the 5S than last year's new model. But some cautioned that the size of the crowds this year may not be an accurate gauge because consumers were unable to order the more expensive model online ahead of time, as with previous launches.
    
"While it is likely some of this line is due to not having an early pre-order option for the 5S, we still believe it shows loyalty to the iPhone remains strong among Apple's installed base," said ISI Group analyst Brian Marshall. He estimates Apple will sell about 6 million units in the first three days.
    
Apple sold more 5 million of the previous iPhone 5 units during its opening weekend last year.
    
One of the first customers to purchase the Apple iPhone 5S celebrates after exiting the Apple Retail Store on Fifth Avenue in Manhattan, New York, Sept. 20, 2013.
One of the first customers to purchase the Apple iPhone 5S celebrates after exiting the Apple Retail Store on Fifth Avenue in Manhattan, New York, Sept. 20, 2013.
A survey done by Piper Jaffray of 416 customers standing in lines outside of stores in New York, San Francisco and Minneapolis found that 95 percent of the people were planning to buy the 5S. Gene Munster, analyst with Piper Jaffray, estimates Apple will sell 5 million to 6 million iPhones over the weekend.
    
While Apple's stock dipped one percent by the close of trade, shares of Avago and TriQuint  ended higher after they were identified as component suppliers for the new models.
    
The gold-colored version of the 5S, which also comes in silver and gray, was already sold out as of Friday and will now ship only in October, according to Apple's website. The gray and silver versions can still ship in 7 to 10 days.

Supplies of both the new models has been disappointing, a source at a U.S. wireless carrier had told Reuters earlier.

Winning chip firms

Analysts have questioned whether the technology of the new top-end 5S is enough to persuade people to trade up. But those concerns did not seem to apply Jimmy Gunawan, the first in line outside an Apple store in Sydney.    

"It's been one year since iPhone 5. It's about time to upgrade I guess," he told Reuters TV.   
 
The new iPhones use chips made by Avago Technologies Ltd, TriQuint Semiconductor Inc and Skyworks Solutions Inc, according to repair firm iFixit, which opened up the iPhone 5S and 5C on Thursday.  
  
Apple iPhone 5c phones are pictured at the Apple retail store on Fifth Avenue in Manhattan, New York, Sept. 20, 2013.
Apple iPhone 5c phones are pictured at the Apple retail store on Fifth Avenue in Manhattan, New York, Sept. 20, 2013.
Broadcom Corp's chip is used for the touchscreen controller in both phones, iFixit said. All these suppliers also featured in last year's iPhone 5. 
  
Another teardown expert, Chipworks - which opened up Apple's A7 chip - found that Samsung produced the application processor while NXP Semiconductor made the new M7 co-processor chip. The iPhone's M7 can track motion data continuously without heavily draining the battery.   
 
Including the M7 processor on the same chip as the main A7 processor would be more efficient than adding it as a discrete chip and would help the two processors communicate more easily, said Real World Technologies analyst David Kanter.  
  
Investors have also questioned whether Apple has priced its new plastic-backed 5C too high to compete with cheaper smartphones that use Google's Android operating system, particularly in China and other emerging markets.  
  
The 5C, which comes in a range of bright colors, carries a price tag of $549 for an unlocked 16 GB model in the United States, though Apple has a history of cutting iPhone prices once a model has been on the market for a while, ISI's Marshall said.    

"We believe it will do the same for 5C after initial pent-up demand is met," he said in a note.   
 
A promoter demonstrates the fingerprint scanner feature of the newly launched Apple iPhone 5S in Singapore, Sept. 20, 2013.
A promoter demonstrates the fingerprint scanner feature of the newly launched Apple iPhone 5S in Singapore, Sept. 20, 2013.
Tech analysts this week praised the fingerprint scanner in the 5S model, which lets users unlock their devices or make purchases by simply pressing their finger.

The sensor technology that powers the fingerprint scanner in the new iPhone 5S was developed by AuthenTec, which was bought by Apple a year ago, iFixit said.    

Apple shares initially traded up, hitting the day's high of $478.55 on the Nasdaq before easing back to close 1 percent lower at $467.41.    

Avago shares closed up 2.1 percent, TriQuint shares finished with a 1.8 percent gain, while Skyworks closed down 0.2 percent.

You May Like

Koreas Mark 61st Anniversary of War Armistice

Muted observances on both sides of heavily-armed Demilitarized Zone that separates two decades-long enemies More

Judge Declares Washington DC Ban on Public Handguns Unconstitutional

Ruling overturns capital city's prohibition on carrying guns in public More

Pricey Hepatitis C Drug Draws Criticism

Activists are using the International AIDS Conference to criticize drug companies for charging high prices for life-saving therapies More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Students in Business for Themselvesi
X
Mike O'Sullivan
July 26, 2014 11:04 AM
They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.
Video

Video Not Even Monks Spared From Thailand’s Junta-Backed Morality Push

With Thailand’s military government firmly in control after May’s bloodless coup, authorities are carrying out plans they say are aimed at restoring discipline, morality and patriotism to all Thais. The measures include a crackdown on illegal gambling, education reforms to promote students’ moral development, and a new 24-hour phone hotline for citizens to report misbehaving monks. Steve Sandford reports from Bangkok.
Video

Video Virtual Program Teaches Farming Skills

In a fast-changing world beset by unpredictable climate conditions, farmers cannot afford to ignore new technology. Researchers in Australia are developing an online virtual world program to share information about climate change and more sustainable farming techniques for sugar cane growers. As VOA's Zlatica Hoke reports, the idea is to create a wider support network for farmers.
Video

Video Airline Expert: Missile will Show Signature on Debris

The debris field from Malaysia Airlines Flight 17 is spread over a 21-kilometer radius in eastern Ukraine. It is expected to take investigators months to sort through the airplane pieces to learn about the missile that brought down the jetliner and who fired it. VOAs Carolyn Presutti explains how this work will be done.
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.