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.

Thread beginning with comment 584728
To view parent comment, click here.
To read all comments associated with this story, please click here.
RE: 5C rip-off
by kristoph on Tue 18th Mar 2014 15:09 UTC 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