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Apple hopes to lower the price of entry with the iPhone 5C by adding an 8GB variant

It was reported earlier this year that Apple’s latest current generation of smartphones have been somewhat of a mixed bag for the company. The $99, entry-level iPhone 5C (largely an iPhone 5 with a colorful plastic body) was apparently not the runaway sales success that Apple had predicted.
As Apple CEO Tim Cook put it, “It was the first time we ever ran that play, and demand percentage turned out to be different than we thought.”
Instead, most people just decided to pony up an extra $100 to get the superior-spec’d iPhone 5S with its faster A7 processor and Touch ID fingerprint scanner.

iPhone 5C
There is now word that Apple is looking to turn the tide by introducing a cheaper, 8GB variant of the iPhone 5C this week (the cheapest iPhone 5C currently available is equipped with 16GB of storage and is priced at $99 on contract). The only other iPhone model that Apple offers with 8GB of capacity is the nearly three-year-old iPhone 4S, which is available for free on contract. It is unknown if the 8GB iPhone 5C would replace the iPhone 4S as a “freebie” smartphone, or if it will occupy a highly plausible $49 price point.
The first option seems like the most likely scenario, as it would allow Apple to rid itself of smartphones using the older 30-pin dock connector (Apple’s current generation products connect are equipped with a Lightning dock connector). It would also align all of Apple’s smartphone screens to 4” – that is until the iPhone 6 hits the market later this year.

Source: Apple Insider

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Tells us about Apple users
By Dorkyman on 3/17/2014 11:46:08 AM , Rating: 2
The fact that the 5C has not been a big draw tells us about people drawn to Apple--they are more or less minions drawn to the magic Apple brand. After all, a colorful 5C looks more like a Samsung or Brand X than an "Apple." And Apple users want something that instantly brands themselves as Apple users and thus a part of the crowd that Gets It. Simple as that.

As for lease-versus-buy: Most people should buy if they have the money, because one pays dearly for the privilege of using someone else's money. As true for phones as for cars. The highest priority though is to build up a cash fund, enough to cover maybe six months of living expenses.

It's also true that leasing involves fewer hassles.

RE: Tells us about Apple users
By aliasfox on 3/17/2014 11:59:14 AM , Rating: 3
It's not necessarily that Apple people are minions - if they were minions, they would've purchased it regardless. The value proposition simply isn't there. It's almost the same story as the Moto X - both perform fine and have a little bit of customization, but once you step back, you realize you're paying (nearly) top-of-the-line prices for relatively midrange hardware, no matter how pretty it is. Might as well chip in the extra nickels for true top of the line, or save a bunch and get something actually cheap.

Of course, the Nexus line goes and messes that up for everyone else because Google doesn't care about per-handset profits and can sell near top of the line hardware for distinctly midrange prices...

RE: Tells us about Apple users
By tonyswash on 3/17/14, Rating: 0
RE: Tells us about Apple users
By name99 on 3/17/2014 3:29:25 PM , Rating: 3
What do you define as a "failure".

In both cases we don't have good numbers BUT
- best estimates for total sales of Samsung GS4 (released Q2 2013) are about 40 million so far
- best estimates for total sales of iPhone 5C (released Q3 2013) are about 30 million so far (they're about 1/4 the sales of iPhone 5S sales, and iPhone 5S+C sales are about 50 million a quarter, three quarters so far of sales)

So Apple released a niche product that sells around the same number per quarter as Samsung's high end phone. This hardly strikes me as a failure.

The ONLY reason people are going on and on about this as a failure is because they're assuming that the ONLY way Apple can succeed is with single blockbuster phones. This is, quite frankly, an insane theory. Apple has been quite happy, in other spaces, to ship a variety of different items which appeal to different users. iPods, for example, for many years have come in a variety of flavors.

There APPEARS to have been (we, let's remember, don't know the details) a failure in demand estimation. But even there, don't get carried away. It's quite plausible that iPhone 5S production was throttled by the number of fingerprint readers available. Given this situation, Apple provided more iPhone 5C's than they believed they could immediately sell because, why not? They'd sell them anyway, at some point --- it's not like they go stale in three months --- and better to have SOMETHING on the shelves which some customers want to buy than to have nothing.
In other words, it is quite plausible that the primary production problem was not a mis-estimation of demand, but an inability to create enough fingerprint sensors. This is a real problem, which needs to be (probably has already been) fixed, but which also has NOTHING to do with the iPhone 5C.

Apple expanded the iPhone business by something that is basically the size of the GS4 market and that's a failure?
Tough crowd...

RE: Tells us about Apple users
By lawrance on 3/17/2014 11:48:49 PM , Rating: 2
The fact that the 5C has not been a big draw tells us about people drawn to Apple--they are more or less minions drawn to the magic Apple brand. After all, a colorful 5C looks more like a Samsung or Brand X than an "Apple." And Apple users want something that instantly brands themselves as Apple users and thus a part of the crowd that Gets It. Simple as that.

You moron, that's not it at all. The 5C doesn't sell well because Apple's core demographic demands quality. If we were satisfied with plastic, we'd be Samdung owners. The price difference between the 5C and 5S ($100) is pretty paltry for the difference in what you get. Over the course of a typical 2-year contract or phone cycle, we're talking $4.17 / month to get the top-of-line phone vs. a plastic backed version with last year's processor and no finger print ID among other things.

Calling 5C buyers "minions" says much more about you than the people who choose to save $100 on a phone they are likely buying for their daughter or son.

RE: Tells us about Apple users
By KoolAidMan1 on 3/18/2014 12:18:32 AM , Rating: 2
People here have a big inferiority complex. They can't just enjoy what they have, they need to mock people who use what they don't have.

RE: Tells us about Apple users
By robinthakur on 3/18/2014 8:18:59 AM , Rating: 2
Actually that's not entirely correct. Apple users tend to have more disposable income and generally want the best thing available (from Apple). The ability to make other people look longingly at what you're using is just gravy, as we say in the UK.

The iPhone 5C was described in the media prior to announcement as iPhone Cheap, iPhone Cr*p and iPhone China, that their usual target market did not want anything to do with that, it's a premium brand! Its like Vertu bringing out a new $5000 phone with a case made of recycled loo roll. When I went to buy a 64GB 5S recently as a present for my other half I did ask the Apple guy what the response was like on the 5C and he said we wasn't sure he understood the strategy either. It looks cheap and gaudy from a distance and those holey cases don't scream great design either (sorry Jonny Ive).

I have now seen a few people with them though and having owned an iPhone 5, I at least know the guts are nice and speedy even if the outside makes the product look cheaper than it actually is. I also suspect that its more targeted at women, teens and children along with emerging markets, as I have yet to see a man using one. This colourful approach probably worked for iPods, largely because an iPod costs considerably less.

I think Apple definitely should have a cheaper iPhone in their product line for those that want the Apple experience but can't afford $650. If it sells well in emerging markets, then great, but don't target them specifically with specific models which you sell worldwide. Whilst posibly a stroke off genius from a supply chain perspective, the fact that it was literally last years model (possibly remanufactured from parts of returned phones) with a plastic case is just a bit too blatant a proposition, even as an Apple fan.

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