Apple goes for higher margins with iPhone 5C, but may miss the mark in China
0. phoneArena 10 Sep 2013, 23:54 posted on
For months and months now, we've been hearing about the supposed "cheap" iPhone that was on the way. At first, the thinking was that Apple could potentially release an iPhone that would hit the $200 off-contract mark (although that was really just wishful thinking by Apple fanalyst Gene Munster.) Eventually, we came to understand that the iPhone 5C would simply be a modification to the iPhone 5, and it would take over the mid-range spot in Apple's lineup between the iPhone 4S and 5S...
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1. Doctor_Drei (Posts: 18; Member since: 27 Jul 2013)
everything from Apple is expensive.. always a marketing gimmick rather than innovation
7. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
GIven the pricing and specs of the 5C, I am starting to think that owners of the plain-jane iP5 have something that is worth more than it would be if Apple had followed the usual model where the 5S would push the 5 into a mid-tier position. Now, the iP5 would seem to become a superior alternative to the 5C - it looks like the 5S while performs the same as the 5C for less.
I bet in the next few weeks, the used market price for the iP5 doesn't drop as much as it otherwise would have.
14. dan86 (Posts: 298; Member since: 17 Mar 2012)
As I told earlier making affordable devices is against Apple's religion.
18. Shatter (Posts: 2036; Member since: 29 May 2013)
Apple could take a brick and put an apple logo on it with a fancy package box and sell it for $100 and people would buy it.
31. frmrVZguy (Posts: 42; Member since: 10 Mar 2012)
RE: "innovation" It's only 3G for China customers per apple.com.cn Yeah all the cellcos there are only in 4G trials but 4G commercial expected 1Q14. How motivated will customers be to buy old tech when new is so close? And then there is the fingerprint scanner ... I smell "Blackberry Pearl trackball" FAIL...
2. lee480 (Posts: 197; Member since: 24 Sep 2012)
Why buy something so expensive when I can get an Xperia Z1 for the same price?
20. anglosaxonengland (Posts: 51; Member since: 11 Sep 2013)
You can comparing two different things like that.
As a owner of an HTC One and a iPad Mini, nothing is expensive if it suits the end user well and that they are able to enjoy using their preferred device. It is only expensive when a close minded person on the internet discourages people from buying their preferred phone and the end user ends up not having the experience they want.
24. McLTE (Posts: 821; Member since: 18 Oct 2011)
I don't know about you, but my definition of expensive is how much something costs relative to what else I can get for the same money.
Expensive is also relative to how much disposable income you have. If you make a million a year, paying 100k for a car may not be "expensive" for you.. but for someone who works at a gas station, that same car is @$^#@ expensive.
Your explanation of expensive makes absolutely ZERO sense.
25. trickster_qc (Posts: 107; Member since: 18 Jun 2013)
That is simply not true.
Check out the definition of expensive and try again!
Also, your opening sentence doesn't make sense.
27. anglosaxonengland (Posts: 51; Member since: 11 Sep 2013)
Nerds!, i wasn't trying to give you the definition of expensive, I was referring to how a average user would respond to it.
3. Atheneum (Posts: 11; Member since: 07 Aug 2012)
as far as I know, Apple is more of a marketing firm rather than tech firm.
4. Ericzhf (Posts: 17; Member since: 27 Nov 2012)
You didn't get it.
Chinese people buy iPhone is not because it's a nice phone, only because everyone knows it's expensive.
If iPhone is cheaper than others, they won't like it anymore.
16. Googler (Posts: 813; Member since: 10 Jun 2013)
That only works if Apple sells enough of them. With pricing like this, China will become a very small niche market. I don\'t see this as a win for Apple in regards to getting the Chinese market on their side, especially when their own phones are rocking some solid performance and builds.
When I lived in Japan, occasionally I\'d see American cars. The Japanese people would buy them for the same reason you mentioned, they were status symbols because they were priced so high due to tariffs and import fees. At the end of the day, none of them kept GM from having financial problems because there just wasn\'t enough of them sold there.
5. sriuslywtf (Posts: 297; Member since: 09 Jul 2013)
Not sure if this is really for Chinese people. In China, 4,488 yuan is an average annual income of a common Chinese.
8. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
Which is one theory for why traders dumped Apple stock once the pricing was out of the bag. USD $549 might as well be $600.
Magic 8 Ball says Apple doesn't sell as many 5Cs as they forecast.
6. tiara6918 (Posts: 2036; Member since: 26 Apr 2012)
With So many Chinese smartphone manufacturers, The iphone5c might struggle finding its position in the market
9. itsdeepak4u2000 (Posts: 3718; Member since: 03 Nov 2012)
iPhone 5C is a fail, instead of that people would buy second hand iPhone 5, which will cost less than that. Only marketing and making money and nothing else.
26. McLTE (Posts: 821; Member since: 18 Oct 2011)
no, people will buy the 5c in droves.. why? I don't know.
A good psychology Phd student could make a great dissertation by studying the phenomenon of Apple supporters buying ANYTHING they produce.
10. rusticguy (Posts: 2828; Member since: 11 Aug 2012)
Is already selling 3 times iPhone in China currently.
12. boosook (Posts: 1436; Member since: 19 Nov 2012)
Come on guys, we all know that the iphone 5c will sell like hot cake. It doesn't matter that it will sell for the same price that the iphone 5 would have. The old apple policy allowed you to get the previous model for a lower price, but it was still a premium product. This year, instead of getting the "old" iphone 5, you will have to buy the 5c for the same price, which will have the same specs but will be heavier, thicker and without the premium design and materials of the iphone 5. This of course is not a benefit for consumers. Yet, how many apple customers will realize that they could have got a better phone because the 5c is just a 5 in a cheaper case? They'll just think: oh look, the 5c is newer, so it must be better. From a marketing point of view, this change is right on the money, and iphone sales will just increase.
17. pellegrini (Posts: 84; Member since: 14 Jun 2012)
The only problem is that apple isn't selling a lot in development countries. The iPhone C was expected to target theses market. Otherwise I don't understand why would apple invest money on a cheap iPhone 5. Does the market spending is worth?
29. JJGotit (Posts: 3; Member since: 11 Sep 2013)
What I really think is that the "C" stands for "COLORS". Think with me... iPhone "5 Colors" (White, Blue, Green, Yellow and Pink).
iPhone 5c is NOT cheap outside US.
13. twens (Posts: 978; Member since: 25 Feb 2012)
You Apple fan boys keep saying Apple will sell like hotcakes. The truth is each year Apple chooses to be stagnant companieslike sSamsung, lg and htc take a pie of their sales. Apple is slowly loosing it and you guys don't see it yet. It happened to Nokia and soon it will happen to Apple. The s3 sold in millions so did the s4 and the note series. Each year the galaxy numbers increase, where do think the numbers are coming from???
21. anglosaxonengland (Posts: 51; Member since: 11 Sep 2013)
Damn, not again.
I don't care how much each company sells. What's important is what the end user prefers, Notes Tabphones, Android smartphones, Apple smartphones, Symbain, Windows phone.
You sound like a bias android fanboy
23. quakan (Posts: 1373; Member since: 02 Mar 2011)
Lg and htc are losing market share not gaining anything. Apple and Samsung are like Verizon and AT&T.
15. Googler (Posts: 813; Member since: 10 Jun 2013)
AAPL is taking a pre-market beating, yesterday\'s pricing news and only two devices revealed isn\'t sitting well with a lot of people. The 5C makes little sense when you look at how much it costs, and definitely isn\'t priced for a Chinese market. Not really sure what they are trying to do with this phone other than recoup lost profit margins.
19. AfterShock (Posts: 3698; Member since: 02 Nov 2012)
I still think their greatest innovation is,
The ability to suck money out of your pocket without you caring.
Should call it, iHooker.
Just under $900 clams for 5c, wtf?
22. SuperDuperPancakes (Posts: 2; Member since: 11 Sep 2013)
No it won't miss the Chinese market. Chinese people are mostly just "dumb and rich", they's buy several of those in a heart beat.
28. Long1 (banned) (Posts: 399; Member since: 18 May 2013)
And why shouldn't they iPhone 5S instead of the ugly iphone 5C, then???
30. Timmehor (Posts: 599; Member since: 09 Mar 2013)
Rich? Chinese aren't rich (overall) that's for sure, it's hardly even a budget phone.