Earlier this week, Apple unveiled its latest iPhone, the iPhone 5S. In addition, the company also unveiled the iPhone 5C, a lower-cost smartphone aimed at emerging markets where low- and mid-prices smartphones are expected to make up a majority of the market. It also comes in five bright colors.
Soon after the announcement, market watchers weighed in on the 5C, with some claiming the device’s price simply isn’t low enough to compete with Android devices, with even some high-end Android devices now priced lower than the iPhone 5C. Today, DigiTimes is backing up these claims by reporting that the 5C is not expected to affect Android sales in any meaningful way. The report cites unnamed “sources in the handset industry in China” as saying the price of the device ($549 off-contract) is simply too high to compete with entry-level Android offerings. This is especially true in China, where local manufacturers are dominating the emerging mid- and low-priced smartphone market.
The report does also state that the iPhone 5C will help Apple gain market share in the fourth quarter of this year. However, DigiTimes’ sources predict that Apple smartphone market share growth will be limited, with Android smartphone sales continuing to make up around 80% of the market.
Meanwhile, Android smartphone manufacturers will be putting pressure on the high-end iPhone 5S with new devices this fall, such as the Galaxy Note 3 and the Xperia Z1. In addition, Samsung and Sony in particular will get a head-start in the wearable computing market with their recently announced smart watches.