He warned, however, that Apple faced a challenging new business model if it tackled Chinese consumers. "Winning on price against Chinese manufacturers will be an uphill struggle for Apple, especially since the iPhone is manufactured in China. A budget iPhone may also have serious repercussions on Apple's carefully managed image. As a brand that has always set itself apart from others by its innovation and by the quality and price of its products, this change of strategy could be Apple's undoing unless it manages to win over China Mobile with the new '5C' model."
Apple is widely expected to launch at least one new iPhone during an event at its Cupertino, California headquarters, but it is also expected to update its Apple TV line as well. In what is expected to be a relatively minor upgrade to the existing iPhone 5, one of the more controversial features expected in the device likely to be dubbed the iPhone 5S is a fingerprint sensor, which could be used for unlocking the homescreen or confirming identity for payment from the App Store or other outlets. The so-called 5C is likely to be a budget model available in several plastic colours.
Images of the new iPhone's packaging, leaked by Chinese website C Technology, appear to show a silver ring encircling the home button, which is thought to be part of the fingerprint sensor. The images also appear to confirm rumours that the new model will be called the iPhone 5S, although images on the packaging led some experts to suggest the device is an elaborate fake.
Separate high-resolution images published last week by Australian teenager Sonny Dickson, who has been behind a number of high-profile Apple leaks, show a circular component that is presumed to fit underneath the iPhone home button, with a fingerprint scanning mechanism at its centre. Apple purchased mobile and network security company AuthenTec, which produces hardware including fingerprint sensors, last year for $356m.
Despite the growing appeal of other brands, mobile operators still consider the iPhone to be the single biggest seller across their ranges. EE this morning announced a trade-in programe allowing users to upgrade to a new handset simply by extending their existing contract and trading in their old model.
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