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

On Everest, Helicopters Rescue Stranded Climbers

Choppers transport some of more than 100 mountaineers trapped after deadly quake, avalanches More

Video Ten Years After Riots, France Searches for Answers to Neglected Suburbs

In 2005, a Paris suburb exploded into violence after two teenagers were electrocuted as they hid from police; since then, somethings have changed, others not More

US, Japan Announce Historic Revision of Defense Cooperation Guidelines

Nations say new guidelines will be 'cornerstone for peace and security' in Asia-Pacific region while also serving as 'platform for a more stable international security environment' More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
‘Angel of the Migrants’ Helps Desperate Syrians Arriving in Europei
X
Henry Ridgwell
April 26, 2015 10:36 PM
Waves of migrants are continuing to arrive on the shores of southern Italy from North Africa. After their dangerous journey across the Mediterranean, they face an unknown future in Europe. In the Sicilian city of Catania there is an activist dedicated to helping the refugees on their journey.
Video

Video ‘Angel of the Migrants’ Helps Desperate Syrians Arriving in Europe

Waves of migrants are continuing to arrive on the shores of southern Italy from North Africa. After their dangerous journey across the Mediterranean, they face an unknown future in Europe. In the Sicilian city of Catania there is an activist dedicated to helping the refugees on their journey.
Video

Video Ten Years After Riots, France Searches for Answers to Neglected Suburbs

January’s terrorist attacks and fears of more to come are casting a spotlight on France’s neglected suburbs. Home to many immigrants, and sometimes hubs of crime, they were rocked by rioting a decade ago. Lisa Bryant visited the Paris suburb of Clichy-sous-Bois, where the 2005 violence first broke out, and has this report about what has changed and what has not.
Video

Video Gay Marriage Goes Before US Supreme Court

This week, the U.S. Supreme Court will hear arguments on whether gay people have a constitutional right to marriage. VOA’s Michael Bowman reports, the case could lead to the nationwide legalization of same-sex marriage, or a continuation of the status quo in which individual states decide whether to recognize gay unions.
Video

Video Study: Insecticide Damaging Wild Bee Populations

A popular but controversial type of insecticide is damaging important wild bee populations, according to a new study. VOA’s Steve Baragona has more.
Video

Video Data Servers Could Heat Private Homes

As every computer owner knows, when their machines run a complex program they get pretty hot. In fact, cooling the processors can be expensive, especially when you're dealing with huge banks of computer servers. But what if that energy could heat private homes? VOA’s George Putic reports that a Dutch energy firm aims to do just that.
Video

Video Cinema That Crosses Borders Showcased at Tribeca Film Festival

Among the nearly 100 feature length films being shown at this year’s Tribeca Film Festival in New York City are more than 20 documentaries and features with international appeal, from a film about a Congolese businessman in China, to documentaries shot in Pakistan and diaspora communities in the U.S., to a poetic look at disaffected South African youth. VOA’s Carolyn Weaver has more.
Video

Video UN Confronts Threat of Young Radicals

The radicalization and recruitment of young people into Islamist extremist groups has become a growing challenge for governments worldwide. On Thursday, the U.N. Security Council heard from experts on the issue, which has become a potent threat to international peace and security. VOA’s Margaret Besheer reports.
Video

Video Growing Numbers of Turks Discover Armenian Ancestry

In a climate of improved tolerance, growing numbers of people in Turkey are discovering their grandmothers were Armenian. Hundreds of thousands of Armenians escaped the mass deportations and slaughter of the early 1900's by forced conversion to Islam. Or, Armenian children were taken in by Turkish families and assimilated. Now their stories are increasingly being heard. Dorian Jones reports from Istanbul that the revelations are viewed as an important step.
Video

Video Migrants Trek Through Western Balkans to Reach EU

Migrants from Africa and other places are finding different routes into the European Union in search of a better life. The Associated Press followed one clandestine group to document their trek through the western Balkans to Hungary. Zlatica Hoke reports that the migrants started using that route about four years ago. Since then, it has become the second-most popular path into Western Europe, after the option of sailing from North Africa to Italy.
Video

Video US Businesses See Cuba as New Frontier

The Obama administration's opening toward Cuba is giving U.S. companies hope they'll be able to do business in Cuba despite the continuation of the U.S. economic embargo against the communist nation. Some American companies have been able to export some products to Cuba, but the recent lifting of Cuba's terrorism designation could relax other restrictions. As VOA's Daniela Schrier reports, corporate heavy hitters are lining up to head across the Florida Straits - though experts urge caution.
Video

Video Kenya Launches Police Recruitment Drive After Terror Attacks

Kenya launched a major police recruitment drive this week as part of a large-scale effort to boost security following a recent spate of terror attacks. VOA’s Gabe Joselow reports that allegations of corruption in the process are raising old concerns about the integrity of Kenya’s security forces.
Video

Video Japan, China in Race for Asia High-Speed Rail Projects

A lucrative competition is underway in Asia for billions of dollars in high-speed rail projects. Cambodia, India, Indonesia, Malaysia Thailand and Vietnam are among the countries planning to move onto the fast track. They are negotiating with Japan and the upstart Chinese who are locked in a duel to revolutionize transportation across Asia. VOA Correspondent Steve Herman in Bangkok has details.
Video

Video Scientists: Mosquitoes Attracted By Our Genes

Some people always seem to get bitten by mosquitoes more than others. Now, scientists have proved that is really the case - and they say it’s all because of genes. It’s hoped the research might lead to new preventative treatments for diseases like malaria, as Henry Ridgwell reports from London.
Video

Video Bible Museum Coming to Washington DC

Washington is the center of American political power and also home to some of the nation’s most visited museums. A new one that will showcase the Bible has skeptics questioning the motives of its conservative Christian funders. VOA religion correspondent Jerome Socolovsky reports.
Video

Video Afghan First Lady Pledges No Roll Back on Women's Rights

Afghan First Lady Rula Ghani, named one of Time's 100 Most Influential, says women should take part in talks with Taliban. VOA's Rokhsar Azamee has more from Kabul.

VOA Blogs

World Currencies

EUR
USD
0.9240
JPY
USD
119.41
GBP
USD
0.6618
CAD
USD
1.2155
INR
USD
63.567

Rates may not be current.