Tuesday Apple Rumors: 12-Megapixel Camera for Phone 5S

by Christopher Freeburn | April 16, 2013 1:23 pm

daily apple rumors AAPL[1]Here are your Apple rumors[2] and AAPL news items for today:

Higher Resolution: With most analysts expecting Apple (NASDAQ:AAPL[3]) to debut its next generation iPhone over the summer, the rumor mill is percolating with reports about its features[4]. According to MacRumors, a Vietnamese source says that the upcoming iPhone 5S will feature a new 12-megapixel camera from Wonderful Saigon Electrics. By contrast, the iPhone 5 has a camera with an 8-megapixel sensor. Apple is also expected to offer improvements to its image capture software to boost night-time and dark condition performance. Most analysts expect the iPhone 5S to be unveiled in June with a July launch. However, a recent report said that time frame could be delayed by production issues. Other analysts are expecting the inclusion of a fingerprint reader in the upcoming iPhone to enhance security and drive a mobile payments systems.

Consumer Wins: The global contest for market share between Apple and Samsung is generating serious savings for Indian consumers[5], the Wall Street Journal notes. Apple, which is attempting to build market share in India after years of remaining mostly outside that market, has unveiled a program allowing consumers to exchange old smartphones — even those not made by Apple — for a $128 cash discount on the price of an iPhone 4. In response, Samsung announced a 15% cash rebate on its Galaxy S3, Galaxy Grand and Galaxy Note 2 smartphones. In the last quarter of 2012, Samsung accounted for 40% of India’s smartphone market, compared to just 5% for Apple.

Estimate: If Apple does unveil a lower cost iPhone, the phone could grab an 11% market share in emerging countries inside of one year[6], AppleInsider notes. That projection comes from Piper Jaffray analyst Gene Munster, based on the idea of a $300 iPhone sold without a contract. Many analysts have noted Apple’s lack of products in the low-cost handset market, which effectively cedes that market to competitors. The company is widely reported to be working on a lower priced iPhone with a plastic casing, likely to debut later this year. Some analysts have questioned whether Apple could maintain its profit margins with a phone priced so low; but Munster says the company could maintain a 30% gross margin on a $300 iPhone. That would still be lower than the 55% margin it generates on current iPhones.

For more about the company, check out our previous Apple Rumors[7] stories.

  1. [Image]: https://investorplace.com/hot-topics/apple-rumors-stock-news/
  2. Apple rumors: https://investorplace.com/search/?q=Apple+Rumors&searchsubmit=Search
  3. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  4. percolating with reports about its features: http://www.macrumors.com/2013/04/15/iphone-5s-may-come-equipped-with-12-megapixel-rear-camera-and-improved-night-shooting/
  5. generating serious savings for Indian consumers: http://blogs.wsj.com/digits/2013/04/16/apple-and-samsung-locked-in-price-war-in-india/
  6. in emerging countries inside of one year: http://appleinsider.com/articles/13/04/16/more-affordable-iphone-predicted-to-grab-apple-11-share-of-low-end-market-in-2014
  7. Apple Rumors: https://investorplace.com/2012/04/hot-topics/apple-rumors-stock-news/

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