Investors dump Apple shares, wanting a lower price for the Apple iPhone 5C
While originally, the Apple iPhone 5C was seen as a new budget model that would replace the free Apple iPhone 4 in Apple's line up, the truth was that the iPhone 5C replaced the Apple iPhone 5 and the Apple iPhone 4S slid into the budget slot. While the price of the Apple iPhone 5C on contract is $99, off contract it is $549 which hardly competes with the $150 off-contract price of the Nokia Lumia 520. Once Apple announced the off-contract price of its plastic iPhone 5C, sellers came into the market. If Apple was hoping that the new model would allow them to compete in India and Africa, they can put that to rest now, according to Wall Street analysts. "While (the Apple iPhone 5C pricing) might not matter in North America and Europe, it matters in emerging markets, which is what everybody, including me, thought they were really going to be targeting aggressively," said Wedge Partner analyst Brian Blair. "It just feels like they should have been more aggressive."
Apple's shares peaked at $705 last September 21st, the day the Apple iPhone 5 launched. Since then, the Apple Maps debacle, fierce competition with Samsung, and worries that Apple was no longer innovative, have left their mark on the stock which closed Tuesday at $495. If the shares peaked when the Apple iPhone 5 was released, will this year's launch mark a bottom?
1. frydaexiii (Posts: 1176; Member since: 01 Dec 2011)
I can\'t wait for PA\'s review for the 5C...Let\'s see how you bullsh!t your way out of \"cheap plastic\" and \"justified price tag\".
4. Googler (Posts: 813; Member since: 10 Jun 2013)
I\'ve been waiting for that as well, especially the \"premium build quality\" section, aka if it isn\'t aluminum, it\'s cheap. Stupid standard that should never have been fed.
7. RoyalPayne (banned) (Posts: 458; Member since: 07 Aug 2013)
Did they call any high end lumia cheap? Don\'t blame them for the shortcuts ur fav companies take.
21. Long1 (banned) (Posts: 399; Member since: 18 May 2013)
Of course they should attack only Samsung.
It's Samsung that smash their iIcon and religion, not Nokia, or HTC, or LG
23. Googler (Posts: 813; Member since: 10 Jun 2013)
Every polycarbonate phone that gets compared to iPhones get negative comments when compared to the "premium aluminum build quality" of the iPhone. Whole aluminum vs plastic argument is stupid and over blown. Both have advantages, both have disadvantages.
So, yeah, I'm curious to how this gets spun now that Apple is using plastic.
32. moroninc (Posts: 171; Member since: 14 Jul 2012)
title reads: \\\"Plastic is the new sexy\\\"
51. donfem (Posts: 515; Member since: 30 Mar 2011)
Just ask the ipologists to explain away the "cheap" look of their cultic phone
8. SuperNexus (Posts: 112; Member since: 18 Jan 2013)
Samsung is moving on from plastic(as per rumor) and Apple is started manufacturing plastic phone.
10. CX3NT3_713 (Posts: 1650; Member since: 18 Apr 2011)
Yea.. they are moving on to a faux leather plastic
13. Shatter (Posts: 1970; Member since: 29 May 2013)
Actually Samsung said they have metal phones coming in 2014.
25. Long1 (banned) (Posts: 399; Member since: 18 May 2013)
I hope you are wrong. Aluminum is the worst material for phones.
Espesially is they are with removable back.
If Samsung do it, they are dead.
33. axllebeer (Posts: 265; Member since: 05 Apr 2011)
Agreed. I wish more companies would use stainless steel like BlackBerry has on some of their phones for the last few years. ie: Bold 9900/9930 and the Q10.
45. ashisharbola (Posts: 61; Member since: 20 Oct 2012)
I don't think so....HTC has introduced HTC one with removal back in china and Samsung got more resources than any other company to do so.
24. Long1 (banned) (Posts: 399; Member since: 18 May 2013)
Many honest rviewers, say that faux leather is GREAT touch and feel.
36. pwnarena (Posts: 825; Member since: 15 Feb 2013)
yeah. stupid leather that makes the phone more easily infested by microorganisms. a shiny plastic phone already gets dirty quickly enough. what made them think leather is such a good choice?
16. RoyalPayne (banned) (Posts: 458; Member since: 07 Aug 2013)
They used to make beautiful metal phones, i dunno what happened to them. Remember the Wave I?
9. PAPINYC (Posts: 2186; Member since: 30 Jul 2011)
They will say that the plastic feels premium and that it was treated with a special iChemical to promote biOdegradability. They will also point out the new and unannounced iBounce feature, instead of your iPhone shattering into a biLLion particles when you drop it - it will just bounce back up to you like a yo-yo and without a scratch making a baaa-haaaa-had situation goo-hoo-hood.
47. Droid_X_Doug (Posts: 5534; Member since: 22 Dec 2010)
Will the bouncing phone be called the iBounce? If they could pull it off, they might actually be onto something. Certainly, no one (not even Sammy) could claim that Apple is copying.
53. TROLL (banned) (Posts: 4851; Member since: 13 Apr 2012)
Your so funny Papinyc, really you take the living piss out of Apple fans and users. I really like you.+1000 if I could... Keep it up
12. TheLolGuy (Posts: 483; Member since: 05 Mar 2013)
Regardless of premium and justified or not, the price is not good. I'm guessing this counts as their 'mid-ranger' and they don't want to stoop down to making low end devices because that doesn't jive with the image of classy and premium that they created for themselves. (I'm not saying that they are or not, so don't even bother telling me your opinion about why its not ok?)
It kind of reminds me of the justification the PS3 designer said, when confronted about the $599 price. He said:
"We want consumers to think to themselves 'I will work more hours to buy one.' We want people to feel that they want it, irrespective of anything else."
I figure they just made one a little bit cheaper to nab people who would otherwise be on the fence.
15. taz89 (Posts: 2009; Member since: 03 May 2011)
The problem I see is that the 5c is not even a mid range price and is effectively still priced as a high end phone.. They essentially have 2 high end phone with one being just a little cheaper.. Imo midrange is below $400
29. papss (unregistered)
Agreed... At this price it's only 15.00 cheaper than a G2!! It's not that nice imo and I really don't like the way the colors and style of plastic is used.
35. TheLolGuy (Posts: 483; Member since: 05 Mar 2013)
Refer to my first sentence 'the price is not good'
Off contract pricing for the latest iPhone model is around 650+. The iPhone 5C looks to be around 500 which I have clearly stated is too high.
I think your price target would've probably convinced a lot more potential customers. If it were my decision I'd probably try to bring it close to 400 too.
38. Furbal (Posts: 230; Member since: 22 Sep 2012)
+1, LG OGP for $434, S4 for $549, Lumia 925 for ~$460, HTC ONE ~$560, Nexus 4 $199/$249.
The plastic was just used to lower manufacturing costs so they can get their profit margin back.
18. RoyalPayne (banned) (Posts: 458; Member since: 07 Aug 2013)
I couldnt agree more. 5C price isnt justified at all.
26. Long1 (banned) (Posts: 399; Member since: 18 May 2013)
PA can't help this, no matter how much they love Apple:
iPhone 5C is not for the Asian market, because they like big screens!!!!!!! (with SD support and FM radio.Besides is not cheap at all- 550$ starting price)
iPhone 5C is not for the US market, because the iFans don't buy plastic. Apple's media propaganda(like BGR) made them hate plastic.
So who's gonna buy iphone 5C?
37. wando77 (Posts: 265; Member since: 23 Aug 2012)
Something along the lines of 'Apple has somehow found a way to make plastic feel premium' I would imagine ;-)
48. djripster (Posts: 118; Member since: 10 Dec 2011)
Ha Ha.. There is no way anyone will be able to talk around it
6. sriuslywtf (Posts: 178; Member since: 09 Jul 2013)
In this battle of Apple and Samsung or Any other OEM, they all winners. We the consumers all lose because were paying such premium price for the cost of \"innovation\" they thing we need. Innovation that\'s \"marketed\" as necessity.
Like the first iphone, It cost $500 unlock on its launch, Now it cost to mere $50 on todays standard. Like the iphone4s, now it cost for \"free\" on contract.
In my opinion, the best bang for the buck phone is Xaomi phones.
Premium internals and design for the price of mid ranger.
27. Long1 (banned) (Posts: 399; Member since: 18 May 2013)
Some ppl not only want " bang for buck", but also the best productivity device. Samsung is more close to this, than any other brand.
5. someones4 (Posts: 618; Member since: 16 Sep 2012)
Philip Schiller looks nervous in the picture when he's announcing the price
11. CX3NT3_713 (Posts: 1650; Member since: 18 Apr 2011)
He is actually trying, not to bust out laughing!! While showing of the price.
28. Long1 (banned) (Posts: 399; Member since: 18 May 2013)
Did he say: "Can't innovate anymore, my ass" ??
14. taz89 (Posts: 2009; Member since: 03 May 2011)
Investors are never happy.. I'v realised especially with apple and Samsung if they make 1 billion or 10billion there shares go down.. On the 5c price yh imo it's really disappointing, really thought off contract price would be $300-400 but at $549 it's still a high end price and for the developing market where things are normally higher than US price anyways won't make much difference again imo... Surprised its that high, really though it would be similarly priced to the ipad mini.. Personally if it was me I would rather get the 5s considering it's not that much more and imo has alot more to offer for the high end price. Even on a 2 year contract after the 2 years your only paying $100 on like over a $1000 over a two year contract so your better off getting the 5s as it's better value.. I feel with the 5c you getting less for more. $300–400 they would have killed it.
22. aditya.k (Posts: 456; Member since: 10 Mar 2013)
Looks like Indians will still have to sell their kidneys! XD
30. Long1 (banned) (Posts: 399; Member since: 18 May 2013)
Do not worry. They won't.
At least not for this iBS.
By the way....it's chinese
34. 9thWonderful (Posts: 230; Member since: 24 Jan 2013)
the sad thing is that the 5c will probably be the most reliable phone for the price bracket. I\'d rather have this candy-coated phone over any budget-aimed android on the market. as far as wanting a cheap retail cost, retail cost & cheap hv never been synonymous...so why even expect it? carriers haven\'t totally adopted the idea of no 2 year agreements so selling a phone at retail for closer to what the contract cost is would be shooting themselves in the foot.
43. ady_lad (Posts: 73; Member since: 17 Jul 2013)
Really? Is this in the budget price bracket? What are you smoking man? For this money you get an Android flagship, you must be out of your mind to buy this crap called iPhone 5C.
44. Sniggly (Posts: 6697; Member since: 05 Dec 2009)
The price bracket is 100 bucks.
What can we find for 100 bucks (or less) on the various carriers?
Oh look, Verizon has the Droid Mini and Droid DNA, as well as the Galaxy S3 at that price.
Sprint has the Galaxy S3 and the LG Optimus G.
AT&T has the Xperia TL, Optimus G, Optimus G Pro (at least at Best Buy) and Galaxy S3.
Granted, many of these aren't *budget aimed,* but started out as high end phones that dropped in price as the market moved on.
Just as reliable.
Just as powerful.
Just as good.
Just as (or more) inexpensive.
46. 9thWonderful (Posts: 230; Member since: 24 Jan 2013)
Verizon has the Droid Mini. talking about phones that started out high end but are similarly priced now b/c they are on their way out...they don't count. as far as the DNA goes, that phone (as well as any other android-based HTC) hasn't been in the warehouse since the HTC One was set to hit Verizon so that's a non-factor as well. any LG smartphone? Xperia? c'mon man...I thought we were talking about real phones. So back to the Droid Mini. hopefully w/the new Moto processors the battery life will be more optimized but I guarantee you'll see more Mini's in store w/complaints than the 5C. why? b/c when you hv regular ppl using such an advance system such as android who don't understand how to maintenance the device (close down running programs, knowing how to combat phone hiccups w/out freaking out, etc)...then you hv a issue-ridden device. you won't see that w/the 5C. again, for the price point...5C will dominate. & for the cheap skate @ady_lad above...if $100 ain't a budget phone nowadays...then you need to get your money up.
50. Sniggly (Posts: 6697; Member since: 05 Dec 2009)
Ignoring everything else in your reply that shows you have no clue what you're talking about, why don't older high end phones count? For that matter, why don't LG and Xperia phones count? The latest Optimuses have had very good reliability records, as have the Xperias. They most certainly count, just like the previous mid grade iPhones always counted.
I'm not going to let you be a weasel and arbitrarily dismiss those phones.
39. Pancholo (Posts: 371; Member since: 27 Feb 2012)
Certain Apple fanboys haven\'t come around justifying the 5C prices yet. I\'m anxious.
42. Sniggly (Posts: 6697; Member since: 05 Dec 2009)
What will really matter is how overwhelmed we get with customers at stores over the iPhone 5S/5C launch. It'll probably be rough no matter what, but I have a feeling that the storm won't be as bad this time.
49. 0kax0el0 (Posts: 36; Member since: 15 Nov 2012)
Well, at least dents in the black 5C will still be black =D