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Apple's more affordable 'iPhone 5C' expected to have greatest US benefit for T-Mobile

post #1 of 42
Thread Starter 
The debut of a new, less expensive iPhone model may have the greatest domestic benefit for T-Mobile, America's fourth-largest carrier which appeals to more budget-oriented customers.

Render
Rendering of iPhone 5C in white. | Source: AppleInsider


With the anticipated launch of new iPhones in the coming weeks, it will likely mark the first time that Apple's latest handsets will debut on T-Mobile day and date with its U.S. rivals, AT&T, Verizon and Sprint. Apple and T-Mobile inked a deal earlier this year to finally bring the iPhone to the carrier in April.

And now, at Tuesday's media, event, Apple is expected to unveil a so-called "iPhone 5C" that will serve as a more affordable handset. The plastic-backed device is expected to come in a number of colors, and reach new customers who may not be interested in the high-end "iPhone 5S."

Market watchers expect that the "iPhone 5C" could help lure customers away from larger carriers AT&T and Verizon to T-Mobile, analysts who spoke with Bloomberg said. In addition to lower prices, T-Mobile also offers more flexible service plans than its larger rivals.

Customers who pay full-price for a new iPhone can avoid signing a two-year subscription to get a subsidized price on the handset. Unlike its rivals, T-Mobile doesn't require customers to sign a contract, which allows customers to switch at any time without paying a penalty.

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Customers line up ahead of T-Mobile's iPhone launch in April. | Source: BTIG Research's Walter Piecyk via Twitter


The "iPhone 5C" could also provide a boost to Sprint, which stands out from rivals by offering unlimited plans for calling, texting and data. Major carriers AT&T and Verizon have transitioned to tiered and shared data plans.

Analysts generally expect that Apple will price its new "iPhone 5C" between $400 and $500 unsubsidized. Though the handset is expected to be sold worldwide, it's believed that China is of particular interest to Apple with the new iPhone model, where customers prefer to purchase their handsets without a contract subsidy.

One survey of Chinese consumers published last month by Morgan Stanley found that the market's "sweet spot" for pricing a more affordable iPhone would be at $486. Keeping the price near $500 would allow Apple to maintain its high margins while also expanding market opportunities to new customers.

Apple's media event kicks off at 10 a.m. Pacific, 1 p.m. Eastern on Tuesday. AppleInsider will have full, live coverage.
post #2 of 42

I hope that Apple doesn't even release a "5C" so all these articles that talk like it's already been officially announced can look foolish.  Unfortunately, what will actually happen if there is no 5C is the same bloggers will blast Apple for "canceling" the 5C or missing the deadline for releasing it (that the bloggers themselves created).  

post #3 of 42

Tmobile unlimited everything for 2 users is $70.  That's an awesome deal as long as the city you live in has LTE for Tmobile. 

post #4 of 42
Quote:
Originally Posted by sog35 View Post

Tmobile unlimited everything for 2 users is $70.  That's an awesome deal as long as the city you live in has LTE for Tmobile. 

That's wrong, it's $120 for unlimited everything for 2 users plus an additional $20 for each phone if not purchased at full retail.
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post #5 of 42

I again wish... whatever the leaks happened should all be wrong. Apple should have worked on a super uber cool phone in its TRADITIONAL SECRETIVE areas or labs and tomorrow it will be unveiled.   Along with iWatch!  

 

Apple, please surprise us! :)

post #6 of 42
I doubt the iPhone 5C will be released in the U.S or Europe. I'm sure that model is going to be strictly sold in BRIC nations where consumers are struggling to pay the cost of Apple's high-end iPhone. Consumers in the U.S. and most of Europe can certainly afford the more expensive 5S model. I'm guessing the 5C is internally suited for China. I'm thinking it will run other networks, but Apple has probably disabled it so as not to work on U.S. networks. The iPhone 5C will likely be sold only in specific countries.
post #7 of 42
I thought the 5C was for China only?
post #8 of 42
Quote:
Originally Posted by sog35 View Post
 

Tmobile unlimited everything for 2 users is $70.  That's an awesome deal as long as the city you live in has LTE for Tmobile. 

 

The cap for 4G data per line is 500MB and then it drops down to 3G and below. For ten dollars more it goes up to 2GB of 4G data per line. The plans are quite good. It will be interesting to see the new phone pricing. 

post #9 of 42
Quote:
Originally Posted by Chandra69 View Post

I again wish... whatever the leaks happened should all be wrong. Apple should have worked on a super uber cool phone in its TRADITIONAL SECRETIVE areas or labs and tomorrow it will be unveiled.   Along with iWatch!  

Apple, please surprise us! 1smile.gif

What would constitute a "super über cool phone"?
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post #10 of 42
Quote:
Originally Posted by Constable Odo View Post

I doubt the iPhone 5C will be released in the U.S or Europe. I'm sure that model is going to be strictly sold in BRIC nations where consumers are struggling to pay the cost of Apple's high-end iPhone. Consumers in the U.S. and most of Europe can certainly afford the more expensive 5S model. I'm guessing the 5C is internally suited for China. I'm thinking it will run other networks, but Apple has probably disabled it so as not to work on U.S. networks. The iPhone 5C will likely be sold only in specific countries.

 

I doubt you are correct. The whole reason to design a lower cost model is to preserve margins while lowering the cost of the device. I suspect Apple will kill the iPhone 4 and probably the 4S. The low cost models will take the place of those models everywhere in the world. This will allow Apple to offer a unified connector port, the new designs will save Apple money in support costs as they are easier to work on and repair, and the designs appear to share many components which will save even more money. 
 
Apple is not afraid of cannibalizing its high end iPhone sales by offering a lower cost model. It did this with the iPod Nano, which displaced the regular iPod as the top seller. 
 
The iPhone 5S will attract users with better build materials, and high end features (e.g. finger print sensor and better camera).
post #11 of 42
Quote:
Originally Posted by Chandra69 View Post
 

I again wish... whatever the leaks happened should all be wrong. Apple should have worked on a super uber cool phone in its TRADITIONAL SECRETIVE areas or labs and tomorrow it will be unveiled.   Along with iWatch!  

 

Apple, please surprise us! :)

 

The problem with that approach is it is being built in China. It takes months to set up manufacturing and to ramp up production. So if it announced it today, you would not get it for months.

post #12 of 42

Well... Tomorrow there is no internet or tv for me.

 

I hope that by wednesday morning we have a nice 720p version of the event available on iTunes so I can watch it later, when I'm home.

I do not think that Apple needs surprises to keep the momentum going. Everyone is already expecting a 5S and a cheaper 5C. If there is something different, people will be blown away. If there's not, tens of millions of both devices will be sold in the first quarter alone.

 

Christmas quarter: 60 million iPhones sold. Stock skyrockets. 59.9 million sold, stock goes to 300$.

 

Same thing here.

post #13 of 42
The iPhone 5c would probably help them to make even higher margins than a discounted iPhone 5, because they don't have to use aluminum.
post #14 of 42

Any idea on how the 5C *might* be different in terms of features?

 

Processor?

Camera specs?

What will it be able to run?

 

The reason I'm asking is because I enjoy "iPhoneography", and certain photo apps like VSCO Cam have one or two features that at this time require the capabilities of an iPhone 5. 

 

If this device will indeed be introduced, it can already be assumed that it will have a different outer body.

 

All speculation at this point, but perhaps someone can make a more educated guess than myself. 

post #15 of 42
Quote:
Originally Posted by Quadra 610 View Post
 

Any idea on how the 5C *might* be different in terms of features?

 

Processor?

Camera specs?

What will it be able to run?

 

The reason I'm asking is because I enjoy "iPhoneography", and certain photo apps like VSCO Cam have one or two features that at this time require the capabilities of an iPhone 5. 

 

If this device will indeed be introduced, it can already be assumed that it will have a different outer body.

 

All speculation at this point, but perhaps someone can make a more educated guess than myself. 

I think that the most optimistic rumors point something similar to a plastic version of the iPhone 5.

 

Most likely we can count on things like 1gb ram, LTE, retina 4", Siri but no one knows the rest. What if Apple goes for a really cheaper device and uses the 4s internals? Everything is possible.

 

One thing that makes sense is that Apple could go for a "killer" feature, something to brag about. What if the iPhone 5C costs 350$, 4S internals but has an iPhone 5-like camera? That would be great for teens (Facebook, twitter, instagram, etc) and it's unmatched at that price point, even for the Nexus line.

 

BTW, it looks obvious to me that it will be able to run every app on launch date, the 4s can.

post #16 of 42
Not many will jump if the 5C is $400-$500. That's a rather steep price of admission for most people.
post #17 of 42
Since my opinion is as good as any analyst's here's my predictions:

iPhone C $299 available in US and all of Apple major markets. Putting it at $99 with contract. "Available Today".

iPhone 5s $599 "Available Sept 20"

Narrow bezel iPad November.
post #18 of 42
Quote:
Originally Posted by techguy911 View Post

I hope that Apple doesn't even release a "5C" so all these articles that talk like it's already been officially announced can look foolish.  Unfortunately, what will actually happen if there is no 5C is the same bloggers will blast Apple for "canceling" the 5C or missing the deadline for releasing it (that the bloggers themselves created).  

So if you get your wish, Apple will be made to look bad. Why would that make you look happy?

As for the 5C, there are so many detailed rumors from so many sources that it would be shocking if it's not real. Why does that bother you? No one is going to make you buy it.
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post #19 of 42
Quote:
Originally Posted by jragosta View Post

So if you get your wish, Apple will be made to look bad. Why would that make you look happy?

As for the 5C, there are so many detailed rumors from so many sources that it would be shocking if it's not real. Why does that bother you? No one is going to make you buy it.

Sounds like he's in the same camp as many others who said Apple would never do a less-expensive plastic smartphone after going premium metal and that's why it bothers him. Apple releasing a lower-priced phone, especially in fun colors, makes a whole lotta sense to me. SolipsismX and I actually expected Apple might do this color thing last year and posted so IIRC.
Edited by Gatorguy - 9/9/13 at 7:58am
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post #20 of 42

Serious question, if the iPhone5C will cost 99 dollars on contract (presumably) - why would this be any more attractive to customers compared to the 'last gen' 99 dollar model of higher build quality that Apple has always had?

 

It's hard for me to see this going well tomorrow, it's just old hardware in a cheaper package. Apple is sacrificing their reputation and simply cutting corners to save a bit on their end, hoping new colors will cover that up? 

post #21 of 42
Quote:
Originally Posted by dasanman69 View Post


That's wrong, it's $120 for unlimited everything for 2 users plus an additional $20 for each phone if not purchased at full retail.

 

You're both wrong. T-mobile's pricing is pretty straightfroward, and contract free, with no overage charges:

$50/month = unlimited talk and text, plus 500MB 3/4G data (throttled to unlimited 2G data after cap, no extra charge)

 

+$30/month = add a second line

+$10/month = add an additional line after the second

 

+$10/month = change 3/4G cap to 2GB

+$20/month = make 3/4G data unlimited.

 

 

So, two people, unlimited talk, text, and (3/4G) data is $100/month. This does not include the cost of any phones, though you can use an existing phone at no charge, and they will subsidize a new phone at 0% interest (once you've paid off the original price, you're done).

post #22 of 42
Quote:
Originally Posted by dasanman69 View Post


What would constitute a "super über cool phone"?

 

Anything not made by Samsung??

post #23 of 42
Quote:
Originally Posted by icoco3 View Post
 

 

Anything not made by Samsung??

Anything that doesn't have that issue: http://hints.macworld.com/article.php?story=20130204131658853

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Social Capitalist, dreamer and wise enough to know I'm never going to grow up anyway... so not trying anymore.

 

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post #24 of 42
Quote:
Originally Posted by delventhalz View Post

You're both wrong. T-mobile's pricing is pretty straightfroward, and contract free, with no overage charges:
$50/month = unlimited talk and text, plus 500MB 3/4G data (throttled to unlimited 2G data after cap, no extra charge)

+$30/month = add a second line
+$10/month = add an additional line after the second

+$10/month = change 3/4G cap to 2GB
+$20/month = make 3/4G data unlimited.


So, two people, unlimited talk, text, and (3/4G) data is $100/month. This does not include the cost of any phones, though you can use an existing phone at no charge, and they will subsidize a new phone at 0% interest (once you've paid off the original price, you're done).

Now go back and look up unlimited everything with no data throttling.
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post #25 of 42
Quote:
Originally Posted by lightknight View Post
 

Anything that doesn't have that issue: http://hints.macworld.com/article.php?story=20130204131658853

 

What issue?

post #26 of 42
Quote:
Originally Posted by macdaddykane View Post

Since my opinion is as good as any analyst's here's my predictions:

iPhone C $299 available in US and all of Apple major markets. Putting it at $99 with contract. "Available Today".

iPhone 5s $599 "Available Sept 20"

Narrow bezel iPad November.

$299 is far too low for the iPhone 5C. I would expect it to be around $450.

Your contract price is also wrong. If it were $299 list price, you'd be able to get it for $0 with a contract, possibly even BOGO. Even at $450, you're probably looking at $0 with a contract.
Quote:
Originally Posted by Jetz View Post

Not many will jump if the 5C is $400-$500. That's a rather steep price of admission for most people.

Really? Then why is it that most of the most popular phones on the market (iPhone, Samsung Galaxy, etc) are well over $500? The market disagrees with you.
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post #27 of 42
Quote:
Originally Posted by dasanman69 View Post


That's wrong, it's $120 for unlimited everything for 2 users plus an additional $20 for each phone if not purchased at full retail.

 

My mistake.  Its $70 unlimited for one user.  Still its much cheaper than AT&T/Verizon.  As long as your city as Tmobile LTE its a great deal.

 

I also like Tmobile because they let you bring your own phone and pricing is straight forward.  AT&T does also but its very hard to determine what the monthly cost would be without a subsidized phone.  Can't find it anywhere on their website.


Edited by sog35 - 9/9/13 at 8:37am
post #28 of 42
Quote:
Originally Posted by dasanman69 View Post


What would constitute a "super über cool phone"?

 

A 'Hello Kitty vs Care Bears' iPhone! </s>

 

Is this article hiding the veiled message that T-Mobile users are flat busted broke?...  Because I am!... :(

/

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post #29 of 42
Quote:
Originally Posted by peliser View Post

The survival of Apple depends on cheaper products. The top companies are flooding the market with cheap electronics.

They've done exceptionally well without cheaper devices up to this point, so why start now? It would only make sense if the 4S gets replaced by the 5C.
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post #30 of 42
Originally Posted by peliser
The survival of Apple depends on cheaper products.

 

No, it doesn't, spambot.

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post #31 of 42
Quote:
Originally Posted by Rot'nApple View Post

A 'Hello Kitty vs Care Bears' iPhone!

Is this article hiding the veiled message that T-Mobile users are flat busted broke?...  Because I am!... 1frown.gif
/
/

I'm holding out for a Teddy Ruxpin vs Monchichi iPhone. Lol
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post #32 of 42
Quote:
Originally Posted by jragosta View Post


So if you get your wish, Apple will be made to look bad. Why would that make you look happy?

As for the 5C, there are so many detailed rumors from so many sources that it would be shocking if it's not real. Why does that bother you? No one is going to make you buy it.

 

Your own statement is what concerns me when you said you heard so many rumors it would be shocking if it's not real.  The rumor sites and bloggers are basically able to convince everyone Apple is going to do something, without Apple making any statements.  So Apple suffers because people believe what they hear in rumors and get bashed when they don't actually do what the rumors say they will do.

 

So no, I'm not happy when Apple looks bad, I hope the rumor sites are the ones made to look bad when they're wrong.

post #33 of 42
Quote:
Originally Posted by techguy911 View Post

Your own statement is what concerns me when you said you heard so many rumors it would be shocking if it's not real.  The rumor sites and bloggers are basically able to convince everyone Apple is going to do something, without Apple making any statements.  So Apple suffers because people believe what they hear in rumors and get bashed when they don't actually do what the rumors say they will do.

So no, I'm not happy when Apple looks bad, I hope the rumor sites are the ones made to look bad when they're wrong.

Normally I'd agree but with so many sources plus a slew of pics made the 'rumors' more than that. I'd call them unauthorized leaks. Apple rarely announces a device before the day of presentation.
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post #34 of 42
Quote:
Originally Posted by Quadra 610 View Post
 

Any idea on how the 5C *might* be different in terms of features?

 

Processor?

Camera specs?

What will it be able to run?

 

The reason I'm asking is because I enjoy "iPhoneography", and certain photo apps like VSCO Cam have one or two features that at this time require the capabilities of an iPhone 5. 

 

If this device will indeed be introduced, it can already be assumed that it will have a different outer body.

 

All speculation at this point, but perhaps someone can make a more educated guess than myself. 

 

Unbelievable that you would ask for or expect a legit response from a post any rumor website today. Can't you wait a day for whatever Apple will announce tomorrow?

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post #35 of 42
Quote:
Originally Posted by dasanman69 View Post

They've done exceptionally well without cheaper devices up to this point, so why start now? It would only make sense if the 4S gets replaced by the 5C.

Not all all. They are going after a different demographic. Within reason, there's value to having a variety of different products for different types of customers.

When the iPhone came out, Apple's sales and share were too small to justify multlple products. Today, they're easily large enough to support several products which address different markets.

That said, I fully expect that the 4S is history. For the past few years, Apple has had a new, main product plus 2 older products. If the continue the 'good, better, best' strategy, that would be 5, 5S, and 5C (not in that order, of course). There's actually research that shows that 3 products is ideal in many cases. Fewer products and the customers are less likely to choose the premium one. More than 3 and it creates confusion. 'good, better, best' exists for a reason.
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post #36 of 42
Quote:
Originally Posted by macdaddykane View Post

Since my opinion is as good as any analyst's here's my predictions:

iPhone C $299 available in US and all of Apple major markets. Putting it at $99 with contract. "Available Today".

iPhone 5s $599 "Available Sept 20"

Narrow bezel iPad November.

Agree, except an analyst may actually have a real rumor source (reliable or not), so basically your predictions are even more useless.

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post #37 of 42
Quote:
Originally Posted by dasanman69 View Post


Normally I'd agree but with so many sources plus a slew of pics made the 'rumors' more than that. I'd call them unauthorized leaks. Apple rarely announces a device before the day of presentation.

 

So a rumor, with pictures, becomes believable if it is repeated often enough. Considering all the rumors and pictures are ALL from unconfirmed sources that is sad.

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post #38 of 42
Quote:
Originally Posted by Realistic View Post

So a rumor, with pictures, becomes believable if it is repeated often enough. Considering all the rumors and pictures are ALL from unconfirmed sources that is sad.

Is there ever a confirmed source when it comes to Apple? I guess they'll get their confirmation tomorrow.
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post #39 of 42

So T-Mobile is cheaper...but why is it so difficult for carriers to have one monthly price for phones on subsidy and another lesser price for phones that are not on subsidy. Even after the initial 2 year contract the subsidy is paid off but the monthly fee is the same. It makes no sense to buy the phone outright unless they are going to discount the monthly fee.

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post #40 of 42
Quote:
Originally Posted by mstone View Post
 

So T-Mobile is cheaper...but why is it so difficult for carriers to have one monthly price for phones on subsidy and another lesser price for phones that are not on subsidy. Even after the initial 2 year contract the subsidy is paid off but the monthly fee is the same. It makes no sense to buy the phone outright unless they are going to discount the monthly fee.

 

T-mobiles prices are without subsidy.  If you don't buy the phone outright you will pay an additional payment for 24 months.

 

AT&T seems to only offer one price with or without subsidy, which is a rip-off for people who own their phones.  They do have the AIO program but they keep your LTE below 9mb

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