Linked by Thom Holwerda on Tue 18th Mar 2014 10:28 UTC

Apple is adding a cheaper 8GB iPhone 5C to its smartphone lineup. The new model first appeared on UK carrier O2's site, but has since been added to a number of international Apple Stores including the UK, Australia, and China. In the UK, it's priced at £429, £40 ($66 including sales tax) less than the 16GB model. Should Apple choose to bring the new budget model to the US, the price seems likely to fall somewhere around $499.

An 8GB smartphone for $500. You can buy six Lumia 520s for that - almost one for every day of the week. You have to be utterly void of common sense to buy this phone. Then again, that seems to be the general attitude towards the 5C anyway.

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RE: 5C rip-off
by kristoph on Tue 18th Mar 2014 15:09 UTC in reply to "5C rip-off"
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Apple is testing the waters with this device. Just now Apple is a huge profit engine and they elect not to play in the lower end. You might argue that's a bad long term strategy (that whole Mac/PC of the 90's) but it's serving Apple very well thus far.

I think Apple's core challenge is that iPhone market share and usage in the US is very high, they basically own the high end. But US is a saturated market and growth is flat. So they need higher growth in other markets - which are more price sensitive - without sacrificing the margins in successful markets like US and Japan.

My expectation is that they will slowly reduce the 5C price until they find a sweet spot that balances growth and profit margins.

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