As we get closer to launch iPhone 5S new information appears about the future device and an Asian analyst comes with some predictions quite daring. He states that iPhone 5 is going to be taken out of production by Apple Lossless Audio CODEC (ALAC), at the end of December iPhone 5C going to replace it on the market, iPhone 4S will continue to be available, at least until next year. Apple Lossless Audio CODEC (ALAC), the process of manufacturing a special version of the has begun earlier iPhone 5C which will be available for operators in China, but which will not be produced in larger quantities than iPhone 5S.
We believe the joint effort by Apple and China Mobile this year will boost the penetration of TDD-LTE to 25% in iPhone 5S and 35% in iPhone 5C shipments, which will generate new shipments momentum for the supply chain. iPhone 5C to replace iPhone 5, while iPhone 4S goes on. We've learned that the iPhone 5 line will be terminated from 4Q13, while the iPhone 4S line will carry on. From this, we infer that iPhone 5C is launched to replace iPhone 5. In other words, the 5C model will be positioned as midrange. We forecast its retail price to be US$400-500. We expect iPhone 5S, iPhone 5C, iPhone 4S and iPhone 4 to fall into the price ranges of US$600-700, US$400-500, US$300-400 and US$200-300, respectively, in the new product cycle. Since iPhone 4's specs may not be adequate to run on iOS7, we think this line may be terminated.
iPhone 5C is going to be available at a price about $200 lower than that of iPhone 5S, iPhone 4S and iPhone 4 ending the line of Apple smartphones. Basically, the iPhone 5C will cost between $400 and $500 on the US market, the iPhone 4S will cover the $300-$400 market, and the iPhone 4 the $200-$300 market. With this move, Apple is trying to offer a powerful mid-end iPhone 5C, which can compete with Android terminals sold at the same price, but I think that Apple would have gained more if it sold it a little cheaper.
