Apple’s two new iPhones both secure its grip on the high end (for now) and extend a cautious toe into (slightly) cheaper waters. They will not deliver a step change in global sales growth, but should deliver solid performance. 9m unit sales at launch are impressive, but 200m updates to iOS 7 (double last year’s figure) point to the continuing strength of Apple’s ecosystem and its ability to deploy innovative new features. We continue to believe there is room in Apple’s portfolio for a $350-$450 phone without weakening Apple’s quality of experience or brand positioning, but this is clearly now off the agenda for another year.