The smartphone, which comes in five colors and is made of plastic, will sell for $549 for a 16GB version or $649 for 32GB. With a two-year contract, the price drops to $99 and $199, respectively.
The unsubsidized pricing only gives users a $100 discount from the
The launch comes as Apple loses market share to rivals such as Samsung. As growth in the high-end smartphone market slows, Apple must find ways to attract new buyers, as well as expand into lower-priced phones. It's unlikely that $549 will be cheap enough to address the low end of the market in places like China. Apple, however, will hold an event in China later this week, where it is believed that Apple will announce a partnership with China Mobile, the world's biggest carrier.