Fear no lightning
By Li Qiaoyi Source:Global Times Published: 2012-9-28 17:00:03
Customers examine the new iPhones at the Apple Store in Hong Kong on September 21, when the gadget debuted in a select batch of countries and regions worldwide. Photo: CFP
Owners of Apple's new, and much anticipated, iPhone 5 the world over may be offering up as much praise for the new gadget's design as they are complaints. Some simply gushed in ecstasy at their first glimpse of the new look, while others cannot help griping over the fact that this new installment is the tallest iPhone yet, mocking it for resembling a TV remote control.
But whether expectations were met or underwhelmed over the issue of aesthetics, no one was prepared for the brand new base of the iPhone 5, which many say may help the California-based Apple Inc extend its position in the smartphone world.
The tech giant introduced a new eight-pin Lightning connector on the iPhone 5's base, bidding farewell to the 30-pin connector that has been used in the iPhone and iPod lineup since 2003.
This may add to the annoyance of those already flustered with the constantly updated line of products, as the smaller connector signals obsolescence for a slew of accessory products that have sprung up around the hot-selling iPhone lineup.
Of course, Apple has offered a solution - selling adapters to customers wishing to continue using older products. However, the company's offerings are rather pricey, retailing for a price tag ranging from $19 to $39, according to information available on the Apple Store.
This comes on top of the $199 sale price for a 16-gigabyte iPhone 5 with a two-year contract in the US.
A small, but major change
The new connector has actually raised hardware costs for the new iPhone, which is already pricier than the previous models in terms of hardware budget, Andrew Rassweiler, senior principal analyst of Teardown Service at the US-based IHS iSuppli, told the Global Times on the sidelines of a tech summit in Beijing earlier this month.
The total materials and manufacturing costs for a 16-gigabyte model are estimated to be $207, versus its pricing without contract of $649, according to a preliminary iPhone 5 bill from IHS iSuppli. The bill does not include other expenses such as software, licensing and royalties, the consultancy firm noted.
Without revealing the actual cost of the new connector, Rassweiler said Apple is taking the change seriously. The Lightning port enables much faster data transfers and is expected to greatly enhance user experience. "That's why the always cost-sensitive company has made this change."
Apple could not be reached for comment. But an Apple senior official's recent remarks give hints of the company's motives.
"This is the new connector for many years to come," AllThingsD.com, an online technology publication wholly owned by Dow Jones reported on September 12, the debut day of the iPhone 5, citing an interview with Phil Schiller, senior vice president of marketing at Apple.
"It simply wasn't possible to build products as thin as the new iPhones and iPods without changing the cord," Schiller said, according to the report.
In addition to an expected elevation in consumer morale after enjoying faster data transfers between the iPhone 5 and other devices, market watchers go further to point out the simple change is likely to stir a whirlwind across the accessories industry.
"Apple users are more open to purchasing accessories for their iPhones, and I think the new connector does mean great business potential for accessory vendors," CK Lu, senior analyst for mobile devices at the US-based market research firm Gartner Inc in Taipei, told the Global Times.
"I don't think buying new accessories would be a burden for me," said Su Weimeng, an employee of a State-owned enterprise in Beijing, who plans to trade in her iPhone 4 that has been used for about two years for the new gadget.
The 28-year-old's passion for the new iPhone still burns brightly, despite her disappointment over the taller design. "I'm set to travel overseas during the week-long National Day holiday, where I may get an iPhone 5 if the gadget is available out there," Su told the Global Times Wednesday.
The Chinese mainland is still not on the list of Apple Inc's prioritized markets, which expect an early release of the new gadget. Hong Kong, however, was among the first batch of markets where sales of the iPhone 5 began on September 21.
New business engine
Sharp-nosed businessmen also know the market potential well, with some early birds already moving into the iPhone 5's accessory arena.
"The newly designed cases for the iPhone 5 will go on sale via our online mall as early as the end of the month," a company official surnamed Qi at Shenzhen GGMM Industrial Co, a licensed accessory supplier for Apple products, told the Global Times.
"Consumer demand for the new iPhone's accessories still exists in the mainland market, although officials sales of the new gadget have yet to start," Qi said, pointing to sales of the iPhone in the country's huge grey market.
The aftermarket battery items for the iPhone won't be available until mid-October, according to Qi, who explained that "the battery products need to be adaptable to the Lightning port, which will take a longer period of time to develop than usual."
Xiao Dingbang, brand manager of Shenzhen-based Hali-Power Industrial Co, an Apple-licensed aftermarket battery maker, is tight-lipped about a new product portfolio for the iPhone 5, citing the company's confidentiality agreement with Apple.
But Xiao expressed confidence over growth opportunities spurred by the new phone, despite a lukewarm market outlook on the new iPhone's sales in the mainland. "It would certainly be a new growth engine for our business," Xiao said in a phone interview with the Global Times.
"The new iPhone would serve to be a boon for the giant accessories industry that has popped up around Apple's products, and the Chinese market would also be a key battleground for those doing business in the field, given the booming smartphone market out there," said Kevin Wang, director of China research at IHS iSuppli in Shanghai.
China will overtake the US as the world's top country-level marketplace for smartphones in 2012, IDC predicted in a research note at the end of August. Shipment of smartphones in China's market is estimated to account for 26.5 percent of global shipments this year, while the US's share will stand at 17.8 percent, IDC said.
"Accessories for Apple's products contribute to most of our sales revenue, and the Chinese market is expected to see more shipments than any other market," said GGMM's Qi, without revealing details. The manufacturer, which has a global sales network, also sells products for other brands including South Korea's Samsung and Taiwan's HTC.
But whether expectations were met or underwhelmed over the issue of aesthetics, no one was prepared for the brand new base of the iPhone 5, which many say may help the California-based Apple Inc extend its position in the smartphone world.
The tech giant introduced a new eight-pin Lightning connector on the iPhone 5's base, bidding farewell to the 30-pin connector that has been used in the iPhone and iPod lineup since 2003.
This may add to the annoyance of those already flustered with the constantly updated line of products, as the smaller connector signals obsolescence for a slew of accessory products that have sprung up around the hot-selling iPhone lineup.
Of course, Apple has offered a solution - selling adapters to customers wishing to continue using older products. However, the company's offerings are rather pricey, retailing for a price tag ranging from $19 to $39, according to information available on the Apple Store.
This comes on top of the $199 sale price for a 16-gigabyte iPhone 5 with a two-year contract in the US.
A small, but major change
The new connector has actually raised hardware costs for the new iPhone, which is already pricier than the previous models in terms of hardware budget, Andrew Rassweiler, senior principal analyst of Teardown Service at the US-based IHS iSuppli, told the Global Times on the sidelines of a tech summit in Beijing earlier this month.
The total materials and manufacturing costs for a 16-gigabyte model are estimated to be $207, versus its pricing without contract of $649, according to a preliminary iPhone 5 bill from IHS iSuppli. The bill does not include other expenses such as software, licensing and royalties, the consultancy firm noted.
Without revealing the actual cost of the new connector, Rassweiler said Apple is taking the change seriously. The Lightning port enables much faster data transfers and is expected to greatly enhance user experience. "That's why the always cost-sensitive company has made this change."
Apple could not be reached for comment. But an Apple senior official's recent remarks give hints of the company's motives.
"This is the new connector for many years to come," AllThingsD.com, an online technology publication wholly owned by Dow Jones reported on September 12, the debut day of the iPhone 5, citing an interview with Phil Schiller, senior vice president of marketing at Apple.
"It simply wasn't possible to build products as thin as the new iPhones and iPods without changing the cord," Schiller said, according to the report.
In addition to an expected elevation in consumer morale after enjoying faster data transfers between the iPhone 5 and other devices, market watchers go further to point out the simple change is likely to stir a whirlwind across the accessories industry.
"Apple users are more open to purchasing accessories for their iPhones, and I think the new connector does mean great business potential for accessory vendors," CK Lu, senior analyst for mobile devices at the US-based market research firm Gartner Inc in Taipei, told the Global Times.
"I don't think buying new accessories would be a burden for me," said Su Weimeng, an employee of a State-owned enterprise in Beijing, who plans to trade in her iPhone 4 that has been used for about two years for the new gadget.
The 28-year-old's passion for the new iPhone still burns brightly, despite her disappointment over the taller design. "I'm set to travel overseas during the week-long National Day holiday, where I may get an iPhone 5 if the gadget is available out there," Su told the Global Times Wednesday.
The Chinese mainland is still not on the list of Apple Inc's prioritized markets, which expect an early release of the new gadget. Hong Kong, however, was among the first batch of markets where sales of the iPhone 5 began on September 21.
New business engine
Sharp-nosed businessmen also know the market potential well, with some early birds already moving into the iPhone 5's accessory arena.
"The newly designed cases for the iPhone 5 will go on sale via our online mall as early as the end of the month," a company official surnamed Qi at Shenzhen GGMM Industrial Co, a licensed accessory supplier for Apple products, told the Global Times.
"Consumer demand for the new iPhone's accessories still exists in the mainland market, although officials sales of the new gadget have yet to start," Qi said, pointing to sales of the iPhone in the country's huge grey market.
The aftermarket battery items for the iPhone won't be available until mid-October, according to Qi, who explained that "the battery products need to be adaptable to the Lightning port, which will take a longer period of time to develop than usual."
Xiao Dingbang, brand manager of Shenzhen-based Hali-Power Industrial Co, an Apple-licensed aftermarket battery maker, is tight-lipped about a new product portfolio for the iPhone 5, citing the company's confidentiality agreement with Apple.
But Xiao expressed confidence over growth opportunities spurred by the new phone, despite a lukewarm market outlook on the new iPhone's sales in the mainland. "It would certainly be a new growth engine for our business," Xiao said in a phone interview with the Global Times.
"The new iPhone would serve to be a boon for the giant accessories industry that has popped up around Apple's products, and the Chinese market would also be a key battleground for those doing business in the field, given the booming smartphone market out there," said Kevin Wang, director of China research at IHS iSuppli in Shanghai.
China will overtake the US as the world's top country-level marketplace for smartphones in 2012, IDC predicted in a research note at the end of August. Shipment of smartphones in China's market is estimated to account for 26.5 percent of global shipments this year, while the US's share will stand at 17.8 percent, IDC said.
"Accessories for Apple's products contribute to most of our sales revenue, and the Chinese market is expected to see more shipments than any other market," said GGMM's Qi, without revealing details. The manufacturer, which has a global sales network, also sells products for other brands including South Korea's Samsung and Taiwan's HTC.