Gartner Research

Apple iPhone and iOS 7 Launch Lays the Foundation for Future Differentiation Versus Short-Term Market Share

Published: 31 October 2013

ID: G00254656

Analyst(s): Carolina Milanesi, Mike McGuire , Van Baker

Summary

Apple's long-anticipated iPhone 5c and 5s models are evolutionary in nature, but should be well-received by loyal owners looking to upgrade. Manufacturers and product marketers must understand the improvements made in these devices and apply these findings to their respective fields.

Table Of Contents
  • Impacts

Analysis

  • What You Need to Know

Impacts and Recommendations

  • The iPhone 5s advances the standard of the iPhone, with features that position Apple well for the next generation of smartphones, but it will have limited impact on attracting new users
  • The iPhone 5c's higher-than-expected price will do little to expand market share, which is limited mainly to mature markets, as open market ASP remains too high for emerging market users
  • Apple's focus on cloud-based services (for example, iTunes Radio) will enhance the value to iPhone users by offering a multifaceted experience
  • The launch of a 64-bit iPhone and 64-bit support in iOS 7 positions Apple well for the future, as the main benefit of 64-bit platforms is the ability to access more than 4GB of DRAM
  • Apple's Touch ID will reignite the deployment of biometrics in consumer devices, but the more important impacts will be in mobile marketing and content acquisition/distribution applications, rather than enterprise-grade security

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