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Discussion in 'Travel Technology' started by uggboy, Oct 20, 2013.
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Is Apple's iPhone 5C a flop?
I understand why they did it. Apple products are expensive, and they wanted to hit a market of consumers who may not be able to afford the standard iPhones. One of the problems is though, that people will put iPhones above food and clothing, so i think if someone wanted and iPhone, they would have already had one.....
You're right. It's more difficult than thought for Apple to bring in new customers for their iPhones, while the retention rates for their flagship models are high, as Apple is now associated to be a high end technology company, sure they want new customers, but the 5S is outselling the 5C by a wide margin. We will see how this all plays out in the longer term for the company, especially with competitors like Samsung and HTC in the running for new customers as well, and yes, they create new "affordable" and "desirable" products too.
Isn't this product an older iPhone (specs) in a new wrapper?
my understanding is it's the same phone but more inexpensive casing,,,
It's not really inexpensive once you allow for the operator subsidy - it's still a $600 phone (or maybe $550). So it's either expensive unsubsidized or requires an expensive service plan. It's not enough cheaper to reach price sensitive customers - and the luxury customers want the top phone. Plus it looks cheap.
In many respects it is, but it's more than a new wrapper. The antenna is different, battery slightly larger, camera slightly improved (e.g. improved backlight sensor). But the core stuff -- the processor and display have not significantly changed.
I think retailing it for even $20 less than they did would have made a large psychological difference. In the US the 5S is selling much better but I think the 5C might do somewhat better in other areas.
Regardless, I think the key is total iPhone sales. If the 5C is only 15% of new iPhone sales that doesn't at all mean it's a flop IF those 15% didn't come at the expense of reduced 5S sales.
I think at the launch of a new phone like the 5s, which has significant new functionality (fingerprint sensor, faster processor) you can expect early adopters to rush to that device (and for a certain crowd, the 64GB version). The 5c is the cheaper phone, so I'd expect it to have a slower ramp up, but probably higher sales over the following year.
But I do wonder -- in the past the cheaper iPhone was last year's model and looked almost identical to the current one. The 5c is dramatically different - brightly colored - so it sort of telegraphs that you bought the cheaper one. Not sure if that will make any difference. On the other side there's quite a few folks who will go for looks (color) over functionality.
The difference between an Iphone 5S and 5C is only 50 Us dollars on the device, so it is not cheap at all! If Apple wants to sell it, they need to lower the price!
I think that the ultimate market performance of the 5C must be measured not by the number of unit it sells in developed markets, but rather how many they can sell in places like China, India and other low(er) income countries.
Instead of lowering the price of the iphone 5 when the 5s was released, (a strategy they have been using for some time now) they released the 5c, which has the same processor as the 5, but the same radio chip as the 5s. So it's equal to the 5 in processing power, but does a lot more LTE bands like the 5s. So in some ways it's better than the 5, but still one (half) generation below the 5s, like the 5.
But, it's not all that much cheaper than the 5s, so I wouldn't exactly call it a cheap phone, though you can get it for $49 - $99 with a 2 year contract vs $199 with a 2 year contract. Still I don't think it's the "cheap phone option" that many people were expecting.