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I created this video with the YouTube Video Editor (http://www.youtube.com/editor) Apple unveils the new iPhone 5S and the cheaper iPhone 5C in a Beijing news conference, but analysts say it is still too expensive.

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Apple unveiled the new iPhone 5S and the cheaper iPhone 5C in Beijing on Wednesday, but analysts and consumers say the phones are still too expensive to compete with cheaper Asian rivals.

For the first time, Apple held a launch event in Beijing, hours after it unveiled the two new handsets at the company's california headquarters on Tuesday.

Reporters played with samples of the phones, but many were disappointed that the launch was essentially just a video replay of the U.S. event.

The plastic-backed iPhone 5C will sell for 730 U.S. dollars in China, almost 200 U.S. dollars more than the United States retail price and only 130 dollars less than its top-of-the-line sibling, the 5S.

New Apple product releases tend to generate a great deal of buzz, but the 5C's reception in China, where fans have been known to queue for days for new products, was lukewarm at best.

Apple's share of the China smartphone market slipped to 5 percent in the second quarter, according to research firm Canalys.

Apple's trailing not just South Korea's Samsung but also Chinese brands Lenovo, ZTE, Huawei and Xiaomi.

Xiaomi, a company just three years old, has been dubbed as China's Apple, and its billionaire, black shirt and jeans-wearing CEO Lei Jun compared to Steve Jobs.

The new smartphone being launched cost just 330 U.S. dollars, and their hugely popular smartphone, the Hongmi, sells for even less, at 130 U.S. dollars.

[Shaun Rein, Managing Director, China Market Research Group]: (english)
"Apple is no longer the cool, aspiration purchase that Chinese in their 20's all want. Their brand image has deteriorated in the last quarter, and young Chinese all want Chinese brands like Xiaomi, and even Lenovo. Because these are at the right price point. They're about 30 to 40 percent cheaper than Apple, but actually they have all the same bells and whistles as Apple.

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