Thursday, September 13, 2012

iPhone 5 Reveal Fails to Wow, but Stock Hits Record High


 by Holly Shoemaker
As expected, Apple revealed the iPhone 5 yesterday. While the listed features did not come as a surprise to many, two stood out – the weight of the phone and the screen size. The smartphone will have a four-inch screen, but will be 18 percent lighter than the iPhone 4S.
Why Change the Screen Size?

Despite the ruling against Samsung in the United States, and the new addendum to an additional lawsuit against Samsung, that company still remains Apple’s biggest competitor. A larger screen makes Apple more competitive with other Android phones, and Samsung has increased the size of its Galaxy S phones each year. It is a bit ironic that Apple did that as it has consistently accused Samsung of copying its moves.

Other News to Know
  • Price – The phone will cost $199 with a two-year contract. The iPhone 5 will become available September 21, 2012 in the United States and in eight other countries.
  • Connectivity – The phone will have the capability to connect to data networks in the United States. However, the phone will not come with a standard connection port.
  • Operating system – The iPhone 5 comes with the latest version of the iOS. Other users may download it beginning September 19, 2012.
Concluding Thoughts

I said last week that perhaps Apple had iPhone 5 insecurity. Many have said that the product lacks a "wow factor." Despite the criticism, the market favorably responded to the announcement. Shares of Apple’s stock hit an all-time high today at $685.50.

JP Morgan said that the sales could boost the U.S. Gross Domestic Product (GDP) by .05 percent. The company expects Apple to sell eight million devices in Q4 2012. Time will tell how accurate this becomes.

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