Apple has introduced a new family member to its extended family tree of phones.
The transition from the iPhone 5 to the 5S is quite small. The only real difference between the two devices is the finger scanner in the home button.
Here’s the catch: there are two different iPhone 5’s introduced into the market. Aside from the iPhone 5S, the iPhone 5C is targeted to individuals looking for a cheaper alternative to the original line of prestigious apple phones.
Apple has been criticized for its high prices that come with its status earning phone. It has become evident throughout these past few years that Apple should lower their prices. The company hopes to provide high-end consumers with high end products, but also branch out to a community with cheaper phones. It ensures visible difference in the two phones: iPhone 5C carries 5 vibrant colours (plastic) whereas the iPhone 5S comes in gold, black and white.
This shift from generic strategies may be costly. Apple’s original generic strategy revolves around differentiation. It’s new approach involving lower cost products shows its efforts in entering the cost leadership strategy. In Porter’s Generic Strategies, being “stuck in the middle” of strategies will not gain Apple a competitive advantage. 
Sources:
http://www.businessweek.com/articles/2013-09-10/apple-releases-two-new-iphones