Apple iPhone 5C to replace iPhone 5 with iPhone 4S to live on?

Rumoured Apple iPhone 5S in champagne colourApple is widely expected to launch two new iPhones, the iPhone 5S and the iPhone 5C, at its upcoming press event on September 10th. While most speculation has pointed to the iPhone 5C being a cheaper model, the latest research note from KGI Securities analyst Ming-Chi Kuo suggests a somewhat different strategy. Whereas in the past, the current iPhone model would continue to be offered as a cheaper alternative, Kuo believes that the iPhone 5C will in fact replace the iPhone 5 completely. The iPhone 4S and iPhone 4 would also continue to be available for some time yet although are likely to be phased out given that they may not be upgradeable to iOS 7.

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 will 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.

Kuo also expects that Apple will reach an agreement with China Mobile (if it has not already done so) to carry both the iPhone 5C and iPhone 5S. He goes on to add that sales in China could kick off in Q3 with global sales to follow in Q4.

The report expects the iPhone 5S to outsell the iPhone 5C. Q3 shipments could top 5.2 iPhone 5C and 8.4 million iPhone 5s units with Q4 shipments to jump to 28 million and 18.7 million units respectively. If so, Apple’s 2013 iPhone shipments could top 160 million devices!

Source : 9to5Mac