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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Another point which has to be considered is that every time one can read that the 5C is not successful, it is because it sells not as well as the 5S.

Is it correct to consider Apple did fail if people do prefer the high end 5S?

But nobody actually know the reason Apple did introduce the iPhone 5C instead of selling the previous generation iPhone 5 at a lowest price.

Many consider that Apple wants and needs to compete against low cost Android smartphones and that the iPhone 5C was their answer. But I think it is completely wrong.

It is not Apple's business model to compete in the low end segment and I don't think Apple want to change their model (why should they?).

I think Apple did try to somehow extend their target market a bit beyond the market targeted by the old iPhone 5 and that the key selling point of the 5C vs the 5 is the colors and the fact it is a new model, not the price. May be Apple did try to targets younger people with the colorful 5C?

Whether the 5C is successful or not depends only on whether Apple earns more money by selling it rather than selling the iPhone 5 at a lowest price.

But once again, the most surprising point to me is to see so many people thinking they know better than Apple how to run their business and who think that the hugely profitable Apple should change its business model to match the business model of companies which for most barely make any profit.

Edited 2014-03-18 15:29 UTC

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