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New Apple iPhone not expected to have many changes

16 Aug 2013

Don't expect to be overwhelmed when Apple unveils its latest iPhone upgrade next month — analysts expect few changes.

The current model, the iPhone 5, saw a larger screen, improved resolution, an upgraded camera and new charging cable. The new 5S, as analysts expect the new phone to be called, will follow the usual drill — faster processor, improved camera and more storage, says Gene Munster, an analyst with Piper Jaffray.

"This is an incremental release," Munster says.

Apple could use a new hit. Its once iron-clad grip on the smartphone market has taken a tumble.

In the second quarter, Apple again saw its market share fall. Researcher Gartner on Wednesday said Apple's share fell to 14.2%, from 18.8% in the year-ago quarter. Market share climbed to 79% for phones from a variety of companies running Google's Android operating system, up from 64.2% the year before.

Apple sold more phones in the quarter — 31.9 million, up from 28.9 million a year ago, but there's a huge gap between Apple and No. 1 ranked Samsung, which sold 71.4 million smartphones, up from 45.6 million.

Apple's solution is to offer a cheaper, plastic version of the iPhone in addition to the new 5S for cost-conscious consumers, a segment where Android is strong, says Van Baker, an analyst with Gartner.

What's been dubbed the iPhone 5C (for "cheap") on Apple online rumor sites "will help bring in new buyers," says Baker.

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