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

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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5C rip-off
by SonicMetalMan on Tue 18th Mar 2014 12:47 UTC
SonicMetalMan
Member since:
2009-05-25

Since the original 5C hasn't exactly set sales records due to its exorbitant sales price, why does Apple insist on their current "rape and pillage" sales tactic? Clearly they do not understand the low-end market.

I am guessing that it costs Apple less than $125 USD to have a dumbed-down version of the 5C produced. Why bother? They just need to lower their expectations of per-unit profits and dump these at a much lower price like Nokia does with the Lumia 520/521.

Reply Score: 5

RE: 5C rip-off
by Kochise on Tue 18th Mar 2014 12:59 in reply to "5C rip-off"
Kochise Member since:
2006-03-03

One word : "Groooooowth" (said in a loud and terrible voice)

Kochise

Reply Parent Score: 3

RE: 5C rip-off
by ebasconp on Tue 18th Mar 2014 13:15 in reply to "5C rip-off"
ebasconp Member since:
2006-05-09

Actually the world is full of people wanting (but unable to) buy iPhones, so, this is an opportunity for a lot of them.

Anyway, I wonder what can you do with 8Gb of storage. My wife's tablet has 16Gb and it is almost full with some apps.

Reply Parent Score: 2

RE[2]: 5C rip-off
by MOS6510 on Tue 18th Mar 2014 13:41 in reply to "RE: 5C rip-off"
MOS6510 Member since:
2011-05-12

If you can't spend $800, but you can spend $500 I think you can spend $800 by saving money. The problem is people want to buy stuff NOW and not put money away until they have enough.

My iPhone has 32 GB, because 16 GB isn't enough. I can't imagine someone buying a 8 GB iPhone and being happy (in the long term), unless they just want to use it as a phone in which case it's a rather expensive one.

In my case 32 GB isn't enough either if I start filming.

An 8 GB iPhone, of which around 6 GB (guessing) is for your use, would only make sense around $200 or even less.

Reply Parent Score: 3

RE: 5C rip-off
by Morgan on Tue 18th Mar 2014 13:16 in reply to "5C rip-off"
Morgan Member since:
2005-06-29

I'm baffled by this too. A $200 off-contract iPhone would put probably wipe Windows Phone completely off the radar. Not because it's a superior OS, but because of the desire for an Apple device in the low/mid end market, where people who don't want Android have to settle for Windows Phone as the only affordable alternative.

There are those (like me) who feel that Windows Phone is a better platform overall than iOS and Android, but I think they are the minority. For most people, it's iOS or Android, and a low budget iPhone would push out any third options, at least here in the US.

Reply Parent Score: 4

RE[2]: 5C rip-off
by leos on Thu 20th Mar 2014 20:04 in reply to "RE: 5C rip-off"
leos Member since:
2005-09-21

I'm not so sure about that. Would it be smart for Porsche to release a $25,000 car to wipe Ford off the map? I don't think so. I like my iPhone for practical reasons but there is no denying part of Apple's brand is the higher end image than other phones.

Reply Parent Score: 1

RE: 5C rip-off
by majipoor on Tue 18th Mar 2014 13:20 in reply to "5C rip-off"
majipoor Member since:
2009-01-22

Clearly they do not understand the low-end market


Clearly you do not understand Apple's business model, you know, the model which allows Apple to make 65% of all mobile profits.

Reply Parent Score: 6

RE[2]: 5C rip-off
by SonicMetalMan on Tue 18th Mar 2014 13:34 in reply to "RE: 5C rip-off"
SonicMetalMan Member since:
2009-05-25

I DO understand, and with crystal-clear clarity. It is also why I do not own any Apple products. Granted the business model for Samsung is not inherently different but two wrongs don't make a right.

Reply Parent Score: 1

RE[2]: 5C rip-off
by ebasconp on Tue 18th Mar 2014 13:36 in reply to "RE: 5C rip-off"
ebasconp Member since:
2006-05-09

You should not base your buys on business models, but in the satisfaction you get while owning a device. IMHO.

It was a reply to SonicMetalMan, sorry! ;)

Edited 2014-03-18 13:37 UTC

Reply Parent Score: 2

RE: 5C rip-off
by kristoph on Tue 18th Mar 2014 15:09 in reply to "5C rip-off"
kristoph Member since:
2006-01-01

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.

Reply Parent Score: 3

RE[2]: 5C rip-off
by majipoor on Tue 18th Mar 2014 15:28 in reply to "RE: 5C rip-off"
majipoor Member since:
2009-01-22

Agree.

One interesting statistics: Apple apparently owns 80% of the $500+ smartphone segment in China.

Now, one can argue whether Apple should target the <$500 segment, but who can seriously think he know better than Apple how to make money?

Reply Parent Score: 2