A basket of Apples – is it too little too late?

Apple Inc introduced two new iPhones today including the “iPhone 5C” that comes in 5 colors, just like the Nokia Lumia series. The budget priced rainbow will start at $99 with a contract and is priced to bring one of the industry’s costliest smartphones within reach of the masses in poorer emerging markets.

A key question is whether the iPhone 5C  will be available in markets like Europe or the United States, heightening the risk that it could cannibalize sales of flagship device the iPhone 5S.

Globally, the market for cheaper smartphones is believed to be around $300  a unit. In the US an untethered iPhone 5S is available for $649 without a contract with the 5C being offered untethered for about $100 less. A cheaper and alternative handset is likely to further erode the after market for iPhones.

According to Reuters – Bernstein Research analyst Toni Sacconaghi estimated smartphone sales may grow to 900 million units by 2015. If Apple manages to capture just 10 percent of that market, the 5C would bring in revenue of $30 billion annually.