Beijing, Sept. 11 (Xinhua) -- For the first time since the iPhone was first released in 2007, Apple has launched two new models at the same time: the 5S with a fingerprint reader and colors such as silver and gold, and the cheaper 5C with a bright plastic casing, the Financial Times reported. Analysts said the introduction of the iPhone in colourful cases may represent a slowdown in technological innovation.

The iPhone5C will retail for $549 in the US, less expensive than the 5S, the most expensive model in the range, but still more expensive than many Chinese handsets. China's homegrown phones have taken a bigger share of the market in countries such as China and India. By pricing the 5C near the top end of Wall Street's expectations, Apple is signalling that it is not willing to sacrifice margins and brand appeal to win back market share from smartphone makers such as Samsung that run Google's Android operating system.

TimCook, Apple's chief executive, unveils two new products at Apple's headquarters in Cupertino. It was the first time Apple has unveiled a new product at its headquarters since co-founder SteveJobs died two years ago.

Cook said: "In the past, we reduced the price of older iphones to make iphones more accessible to new customers. We don't plan to do that this year. This year, the business is so big that this year we're going to replace the iPhone5 with not one but two models. This will allow us to serve more customers."

Changes in shares of Apple suppliers

Apple stock usually outperforms when rumors buzz ahead of the release of new iphones and ipads. This is not true of all of its suppliers, but HonHaiPrecision has outperformed Apple: its share price rises on rumours -- and on confirmation.

Hon Hai, also known as Foxconn, is Apple's biggest assembler. Its shares outperformed Taiwan's benchmark index by an average of 5% in the two months before the launch of a new iPhone (this time: 7%); It outperformed by a further 6 per cent in the two months after launch. Apple's shares, meanwhile, outperformed the market by an average of 11 per cent before launch day (this time: 16 per cent), but have since been roughly in line with the benchmark.

The Financial Times reports that when it comes to investing, using the mean as a basis is unreliable. Hon Hai's share price barely outperformed its benchmark after the iPhone5 launch last year, but that still represents a 3 per cent decline, although it has not taken a big hit compared with Apple's 18 per cent fall. Two-fifths of Hon Hai's sales come from Apple, which means the market's perception of a close link between the two will not fade. Look at Pegatron, Hon Hai's rival Taiwanese assembler and relatively new Apple supplier, whose operating profit is 1.5%, compared with Hon Hai's 2.8%. Pegatron's shares, which have risen by a quarter since winning more of Apple's business this year, have fallen 6 per cent in the past two months. Perhaps Pegatron's share price will finally move in Hon Hai's direction on the iPhone news? Meanwhile, an investment in either stock still boils down to a bet on future iPhone sales.

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