Originally Posted by lvidal
You are an Apple fan that doesn't understand Apple at all.
Want to see your face in the Q1 '14 when the 5C will be sold at record highs.
It's a very hot hit just now.
Yes the 5C will sell well. The colours alone will assure that. But that doesn't mean they made an optimal move. It can sell at "record highs" and still be "a fail" if the alternative would have achieved a better outcome (be that market share, profit, public opinion or other strategic benefit).
What I, and many others, don't understand is why they invested so much into redesigning an iPhone 5 when the existing iPhone 5 would have performed admirably. The effort would have made complete sense if they pitched the 5C as a less premium version of the iPhone 5 at the same price they are currently offering the iPhone 4S. Customers would see a clear value progression from plastic (5C) to premium materials (5) to premium materials plus cutting-edge technology (5S). They would also have standardised to 4" displays and lightning connector across the entire range.
Ignoring subsidised US pricing (which only serves to obscure real costs) the outright cost of the iPhone 5C is AU$210 more expensive than the iPhone 4S (a 40% increase). But there is only AU$130 difference between the iPhone 5C and the iPhone 5S (an 18% increase).
Answer me this: What kind of consumer is willing to cop a 40% increase for a 4-inch display, but not half that again for cutting-edge features?
This was a key opportunity to hit Android hard and turn the tide of the public discussion around market/profit share. Instead Apple high-balled on price and, in doing so, emphasised their biggest weakness. If they made the iPhone 5C to maximise margin and upsell the iPhone 5S: mission accomplished. But if they made the iPhone 5C to compete with Android (or scoop up massive market share in China, as we all suspected) they may have missed the bullseye. They still hit the target, but they're not going to be splitting any arrows.
Who knows, maybe there is something about the 4" displays that makes them that much more expensive to manufacture? But Samsung seems to manage and Apple replaced the 3.5" touch with a 4" touch panel earlier this year with minimal effort.
This does position the 2014 lineup to consisting of iPhone 5C (plastic), iPhone 5S (premium materials) and iPhone 6 (likely a redesign around a larger display).
It also makes my decision to stick with my iPhone 4S for another 12 months that much easier.
Let's see what the iPad news brings.
Edit: The above was based off the pricing on the Australian Apple store, which lists prices starting from $739 (US$686) and includes 10% sales tax. The US$549 listed on the US store is massively reasonable. Apple is obviously hedging the Australian dollar will depreciate further. I sure miss our currency being at parity with the greenback *shakes fist at currency markets*
Edited by Dunks - 9/10/13 at 9:49pm