Apple attracted long lines of shoppers at its retail stores today for the global debut of its latest iPhones, in the company's biggest move this year to stoke new growth.
In Tokyo's Ginza area, about 800 people waited, including some dressed as Batman and Apple co-founder Steve Jobs in a face mask, jeans and black turtleneck. More than 400 lined up in Sydney's central business district hours ahead of the 8am opening, while a Beijing store attracted a crowd of only about 50 because buyers had to register online for an appointment to collect their devices. The iPhone 5s and 5c handsets also go on sale today in Hong Kong, Singapore, Germany, France, UK and the US.
A date for an Irish launch has not been confirmed.
It’s the first time Apple is rolling out its flagship product for sale in China on the same day as elsewhere, rescinding the usual three-month delay, as the company seeks to lure new customers in the world’s largest mobile-phone market.
“Last year, if you wanted an iPhone 5 right after the launch, it was very expensive because you had to buy one that had been brought in from Hong Kong or the US,” said Max Zhang, a 20-year-old student waiting at the Wangfujing store in Beijing for an iPhone 5s. “Now that I can buy it directly in the Apple Store, it’s cheaper.”
Opening-weekend sales are crucial to boosting Apple after nearly a year without releasing a new device and ceding market share to rivals including Samsung Electronics in the $280 billion smartphone market. Whether the California- based company can surpass the record 5 million smartphones sold during last year's iPhone debut depends largely on whether there is enough supply of the feature-rich iPhone 5s.
“It really depends entirely on how good or bad the yields on the 5s are,” said Carl Howe, an analyst at Yankee Group, who correctly predicted opening weekend sales last year. Apple could top 7 million in sales if it has enough handsets, though “Apple may not even hit the 5 million I predicted last year if the 5s is in really short supply”, he said.
Apple will sell as many as six million units even though it won’t have enough iPhone 5s handsets available, according to Gene Munster, an analyst at Piper Jaffray Cos. New fingerprint- reading technology makes the gadget harder to manufacture, he said.
Brian Marshall, an analyst with ISI Group, also predicts six million iPhones will be sold.
In some places, people started camping out in front of Apple stores days ago to get the new iPhones, evoking scenes from earlier product introductions - even though the gadget is now six years old. Dozens of people gathered near the Paris Opera by 7.30pm yesterday, prepared to stay overnight with a weather forecast for rain. Some had blankets and campers’ chairs.
“I started lining up five days ago,” said Sachihisa Saishiki, a 45-year-old who runs his own business and has camped outside the Tokyo Ginza store at least six times previously. “I was with a group of 10, and we took turns going out for food, going back home to take showers. I spent time sleeping out here, too, lying down on a cardboard box,” he said after buying a gold iPhone 5s.
The iPhone 5s features a new camera and faster processor. It costs $199 to $399 depending on the amount of memory and with a two-year contract. Without a contract, the smartphone costs at least $649.
For the less-expensive iPhone 5c, Apple took last year’s iPhone 5 and mostly repackaged it in a new plastic casing that’s offered in five different colours. It costs $99 to $199 with a two-year contract, or $549 without one.
Amy Bessette, a spokeswoman for Apple, declined to comment.
In addition to the new handsets, Apple also introduced a new mobile operating system, iOS 7, to customers September 18th. It includes a redesign of applications like e-mail, calendar and photos, and adds new icons, fonts and color scheme.
Jimmy Gunawan was the only person in line at the Apple Store on Sydney’s George Street when he arrived at midday yesterday, with others joining about three hours later. The 33- year-old freelance filmmaker wanted the handset for its video functions, upgraded camera and fingerprint technology.
“When I arrived I thought I would be further back,” said Mr Gunawan, who bought two gold iPhone 5s models, one for himself and one for his mother. “It’s not about having a large screen or powerful hardware, it’s about the balance of everything.”
Every iPhone release is critical for Apple because the product accounts for about half its revenue. Since the iPhone 5 started selling last year, the company has faced increased competition from rivals including Samsung, which has become the world’s largest maker of smartphones by offering customers a wider variety of designs and prices.
“This is the second time for me to line up here, but it feels like there’s more people this time than the last time,” said Katsuki Tochi, a 37-year-old in Tokyo who bought black and white versions of the iPhone 5s. “I love Apple, their design is great.”
Apple typically puts out a press release with opening- weekend sales figures on the Monday after the iPhone goes on sale. How Apple performs in China is particularly important, given the scale of the market there. Analysts have questioned whether the price of the iPhone 5c - more than the equivalent of $700 because of tariffs - will be too expensive for customers in China.
Partly because of that, Apple shares have fallen 6 per cent since the company announced the iPhone pricing last week.
A survey of 25 of the earliest customers at the Beijing store found 22 customers were there for the more expensive 5s model, compared with three for the 5c.
"Tim Cook is now finally treating China as important as the US," said Tony Yu (28) referring to Apple's chief executive. The local government bureaucrat woke up at 2am and drove more than 300km from Qinhuangdao to be at the Beijing store by 6am "It costs me about one month's pay, but it's worth it." (Bloomberg)
