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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 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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