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Tieng Anh Vui
Apple has unveiled the first of two new handsets, the iPhone 5C - a version of its handset with a plastic back in a choice of colours.
The firm has still to show off its new top-end model at a press conference being held in California.
It marks a change of strategy for the company which has not launched two distinct types of handset at the same time.
The iPhone is the firm's most important product in terms of earnings power.
Apple also revealed the revamped mobile operating system, iOS 7, would be available to download for use on the earlier iPhone 5 and 4S models from 18 September.
The new devices will include copies of Apple's word processing, spreadsheet and presentation apps which had previously cost extra.
China slowdown
Its most recent financial report said the product line accounted for $18.2bn (£11.6bn) of sales in the April-to-June quarter. That figure, which did not include downloads from its App Store, represented just over 50% of Apple's total revenue for the period.
However, while the number of iPhones sold was 20% up on the previous year, the company has been losing market share.
iPhones accounted for 13% of global smartphone shipments in the second quarter, according to research firm IDC, down from 17% for the same period a year earlier.
In contrast Android's share has grown from 69% to 79%.
| UK | US | China | |
|---|---|---|---|
Based on smartphone shipments over first half of 2013 (Source: IDC) | |||
Android | 57.3% | 52.9% | 88.4% |
iOS | 28.2% | 42.6% | 8.0% |
Windows Phone | 5.3% | 2.8% | 2.0% |
Blackberry | 9.3% | 1.7% | 0.1% |
Investors have been particularly concerned about Apple's performance in China.
At the start of 2013, chief executive Tim Cook predicted the country would eventually become Apple's biggest market.
But the company's latest results showed sales in China and Taiwan were 14% lower in the April-to-June quarter than the previous year. That was despite the fact it saw 12% growth for the same period in the US.
"The cheaper iPhone is critical for expanding the addressable market, because many people in China and elsewhere simply can't afford to buy a current generation iPhone, especially when it's not subsidised," said Jan Dawson, chief telecoms analyst at the consultancy Ovum.
"However, the key risk for Apple in launching a cheaper iPhone is that it may cannibalise sales of the high-end phone.
"That would exacerbate a problem Apple's had for the last few quarters, as average selling prices for iPhones have fallen from $608 to $581 in the past year. That in turn squeezes margins and it's only likely to get worse with a cheaper iPhone."
Flagship handsets compared | ||
|---|---|---|
| Device | Vital information | What the experts say |
Samsung Galaxy S4  |
| "On the plus side, it has better battery life, the same smooth performance and a beautiful display... but we can't help but think of one word to describe Samsung's particular flagship entry: predictable." |
HTC One  |
| "I'm a sucker for beautiful hardware, and this device is one of the best-designed smartphones I've ever used... the problem lies with the camera. Maybe I'm in the minority when I say I care about the quality of my cellphone images, but I do, and the One just doesn't deliver." |
Moto X (not available in UK)  |
| "If only the camera were better and Motorola's apps were a little sharper, we'd give it a no holds barred recommendation. As it is now, the Moto X deserves to be in the conversation when discussing the best Android has to offer, but a few key flaws keep it from being called an excellent phone." |
Nokia Lumia 1020  |
| "A niche device, the Lumia 1020 is $100 pricier than most high-end smartphones. The lens makes it a little bulky... Avid mobile photographers will love the Nokia Lumia 1020's exact controls, but casual users should stick to cheaper camera phones." |
LG G2  |
| "The LG G2 has lots of worthy features and is an excellent upgrade of its Optimus G predecessor. The only thing that bothers us is the lack of memory expansion at a time when more and more manufacturers are favouring the return of the microSD card slot." |
Sony Xperia Z1  |
| "Small and cute it certainly isn't, the Sony Xperia Z1 is the Tonka Truck of flagship smartphones. But it's tough, chunky and exceptionally well made, and its camera is seriously promising." |
Blackberry Z10  |
| "Does it match the features and opportunities for tinkering of Android? No. Does it match the quality and quantity of apps available for the iPhone? No. But BlackBerry 10's innovative features - from its superb keyboard to the fantastic TimeShift [photo editing tool] - have got us excited." |
Huawei Ascend P6  |
| "It's got good looks, runs well and it feels well built. Yes, there are some really minor niggles, like that daft headphone cover/pin, among some more major issues such as the limited battery life - but we still rather like the phone when it's in full swing." |
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