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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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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.

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


"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins














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