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First Take: Apple's latest defining moment

Jon Swartz
USA TODAY
  • Design guru Jony Ive is %27unapologetic%27 about plastic casing of iPhone 5C
  • Pink%2C yellow%2C green%2C blue and white iPhones start at %2499
  • iPhone 5S comes in champagne gold%2C silver and space gray%2C no less

CUPERTINO, Calif. – The defining moment of a defining day for Apple came when the multi-colored iPhone 5C premiered.

It's fitting the near-future of the iconic company hinges -- in part -- on the colors pink, yellow, green, blue and white – at a starting price of $99. Going mainstream seems like the next logical step for Apple, which is under siege from rivals like Samsung that offer a kaleidoscope of smartphones with different features.

Apple design guru Jony Ive, in a video, said the company – which built its reputation and considerable market value on premium pricing -- is "unapologetic" about the plastic casing of the iPhone 5c. And, to be fair, Apple showcased the new iPhone 5s (in champagne gold, silver and space gray, no less), which offers fingerprint authentication, a snazzy new camera and 64 bits of power. It starts at $199.

iPhone 5s is the "most-forward-thinking" smartphone yet, Apple marketing chief Phil Schiller said to an audience that included tech celebs Marissa Mayer and Jack Dorsey.

But the much-anticipated event today underscores the brave new world Apple finds itself in. Chinese phone makers, Android devices and the aggressive giant Samsung are fiercely contesting Apple on every front, prompting Apple's move to lower-priced smartphones.

Apple has its work cut out. Of the approximately 140 million smartphone consumers in the U.S., some 38.3% use Apple products, compared with 36.5% last year. But Android's slice is 45.9% this year, vs. 43.5% a year ago, according to eMarketer.

Apple CEO Tim Cook hammered home the notion that iPhone 5c is an exciting, vibrant smartphone that changes the rules of design and variety in an increasingly crowded market.

He's right. For the company to thrive in such a hotly contested market, it needs to go cheaper and put some color into its smartphone lineup.

That's because Apple faces a slipping market position on the worldwide front, down at 14.2% from 18.8% a year ago, according to the latest figures from researcher Gartner. Launching an iPhone 5C is a necessity for Apple to compete in price-sensitive markets where Apple is under seige by lower-priced Android rivals.

China Mobile counts an enormous 740 million subscribers that Apple could tap into with its lower-cost model. CEO Tim Cook has been reported making the rounds with the phone carrier to secure a deal.

China and emerging markets represent that next frontier in Apple's quest to market its wares to the world.

What remains to be seen is will a rainbow of iPhone colors lead to a pot of gold.

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