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New 'budget' iPhone out of reach for average South Africans

Lauren Kate Rawlins
By Lauren Kate Rawlins, ITWeb digital and innovation contributor.
Johannesburg, 13 Sept 2018
The new Apple iPhone XS and XS Max.
The new Apple iPhone XS and XS Max.

Apple has added three new smartphones to its iPhone range, including a "low-cost" option which it hopes will reach a broader group of people.

This year, the California-based company switched things around and instead of launching two high-end devices in different sizes (the iPhone 8 and 8 Plus) and one ultra-premium device (the iPhone X), it launched two ultra-premium smartphones and one cheaper, but still high-end, device.

It unveiled the 5.8-inch iPhone XS, the 6.5-inch iPhone XS Max and the 6.1-inch iPhone XR. As the rumours suggested, the iPhone XS and XS Max both have OLED screens and the XR features an LCD display (which Apple calls liquid retina).

"iPhone XR helps us reach even more people with the latest iPhone innovations," says Philip Schiller, Apple senior VP of worldwide marketing.

He notes it is packed with new technologies, including: edge-to-edge display, the latest TrueDepth camera, Face ID authentication, A12 Bionic chip, long battery life, and like the 5C, the XR comes in a variety of bright colour finishes.

Prices for the XR start at $749 (around R11 200), $999 (around R15 000) for the XS and $1 099 (around R16 500) for the XS Max, but could reach up to $1 449 (R21 500) for the 512GB model.

However, in South Africa, these prices will be much higher due to shipping costs and taxes. Last year, the lowest-spec iPhone X retailed for $999 in the US, but R20 499 here.

Therefore, the iPhone XR price will be much steeper than the average South African can afford.

"The XR is symbolic of the market that Apple targets, in the same way the 5C was when it was first launched. It is not a low-cost phone, merely a lower-cost phone. Casting it as Apple's 'affordable' phone highlights the extent to which the iPhone really is a developed market brand, and does not meet the needs of emerging markets," says Arthur Goldstuck, World Wide Worx MD.

"Of course, that makes it all the more aspirational a brand, and there will be a great desire for the phone, but it's not going to have a major impact on iPhone market share. If one can afford the XR then one would probably want to go for the next model up, namely a 'proper iPhone' rather than a de-speced edition. In other words, it is the 5C all over again."

The iPhone XS and XS Max will be available in South Africa by 28 September. The iStore, the official Apple distributor in the country, has said it will offer a new payment plan for the iPhone, in partnership with FNB Credit Card, to allow users to get a new iPhone every year.

Those who choose to upgrade their iPhone at the iStore will also get a free two-year extended warranty and certified screen repair.

It is not yet known when the XR will go on sale here.

Apple climbs on dual-SIM train

Apple CEO Tim Cook unveils the new Series 4 Apple Watch.
Apple CEO Tim Cook unveils the new Series 4 Apple Watch.

The tech giant announced that one of the new features the XS and XS Max will come with is dual-SIM capability through the use of a nano-SIM and digital eSIM. Android devices have had similar features for several years.

Steve Alder, chief business development officer at Truphone, says: "The proliferation of eSIM technology will certainly benefit consumers. Anyone that has access to a mobile phone with eSIM capabilities will be able to change network providers at the touch of a button; giving them access to a broader, and eventually richer, range of network deals that best suit their needs.

"This is particularly good news for regular travellers, as eSIMs have the potential to eliminate roaming charges abroad. It also enables people to switch operators quickly to get connected if they're in an area with no signal, frees up space for new features or additional battery life and could lower the risk of device theft."

Watching heart health

Philip Schiller, Apple senior VP of worldwide marketing, shows off the new iPhone XR.
Philip Schiller, Apple senior VP of worldwide marketing, shows off the new iPhone XR.

The company unveiled the latest iteration of its Apple Watch at the same event. CEO Tim Cook said not only is the Apple Watch the bestselling smartwatch: "It is now the bestselling watch. Period."

New features focus around health and using technology to prevent serious illnesses or alert people when the wearer is in trouble.

There is a new accelerometer and gyroscope built in to the device to detect if someone falls down. The watch will immediately issue an alert that the user can press to call an emergency service if they need help. If the watch detects the person has not moved for more than a minute, it calls the emergency service itself and sends a message to all the user's emergency contacts with the wearer's GPS location.

There is also an electric heart rate sensor that can take an electrocardiogram (ECG) using the new ECG app (which has been granted a De Novo classification by the Food and Drug Administration for use in the US).

"The completely redesigned Apple Watch Series 4 continues to be an indispensable communication and fitness companion," says Jeff Williams, Apple's chief operating officer.

"And now with the addition of ground-breaking features, like fall detection and the first-ever ECG app offered directly to consumers, it also becomes an intelligent guardian for your health."

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