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Apple's pricier iPhone 5s reportedly outsells more affordable iPhone 5c by wide margin

post #1 of 57
Thread Starter 
Apple's new high-end iPhone 5s proved to be the most popular choice for early adopters this weekend, outselling the mid-range iPhone 5c by more than threefold, a new report claims.

Localytics


Data published Monday by Localytics found that the iPhone 5s was 3.4 times more popular than the iPhone 5c after the first three days of availability. The firm's data is based on data from over 20 million unique iPhones tracked through applications and customers.

Together, the iPhone 5s and iPhone 5c represented 1.36 percent of all iPhones activated in the U.S. through carriers AT&T, Verizon, Sprint and T-Mobile. The iPhone 5s represents 1.05 percent of all U.S. iPhones, while the iPhone 5c accounts for 0.31 percent.

"That means the iPhone 5s outshines the 5c by a factor of 3.4x, a clear indicator that early adopters are favoring the high-end 5s compared to the 5c," wrote Bernd Lerger, vice president of marketing at Localytics. "This makes sense since those who feel the need to buy a new device the very weekend it launches are most likely the power users who want the highest-end phone experience."

The iPhone 5s is Apple's new flagship phone, featuring the A7 processor, Touch ID fingerprint scanner, M7 motion coprocessor, and improved iSight camera. The iPhone 5c, meanwhile, features largely the same parts and performance last last year's iPhone 5, but features a new polycarbonate plastic back that comes in a range of five new colors.

Breaking down adoption of the latest iPhones by carriers, Localytics unsurprisingly found that AT&T was the most popular choice for users. For years AT&T was the exclusive carrier of the iPhone, and the wireless provider has remained the default choice for most iPhone users in the U.S.

Internationally, the data also shows the iPhone 5s outpacing the iPhone 5c, by an even greater factor of 3.7 times. In Japan, the iPhone 5s is more popular than the iPhone 5c by a factor of five.
post #2 of 57
Why is this even news? Of course 5S is going to be more popular on launch weekend. 5C isn't the kind of phone that people have to have NOW. But I'm sure over time it will sell very well and will probably be Christmas gifts for lots of people.
post #3 of 57
Fortune goes with, "An early sign that Apple may have erred when it set the price of the iPhone 5C so high."

Really?

Wall Street wanted a cheap, junk smartphone from Apple and Apple chose not to produce junk. Now when the higher priced iPhone 5s outsells the less expensive iPhone 5c, Apple erred.

Hmmm...

Maybe Apple wanted to sell more iPhone 5s smartphones to show Wall Street that Apple knows its business better than analyst.
post #4 of 57
The 5s just has so much more, and the price difference in negligible compared to the total cost of ownership (initial fee plus 24xMonthly rate).

Having said that, the plastic case is actually a big feature IMHO. I was blown away by the quality of this (as nice as, but different from, the metal version), and if it wasn't for the rather feminine colors, I could be tempted. The 5c just has a really nice feel.

A 5s in a black 5c case would sell well, I think. I guess that'll come next year :-)
post #5 of 57
Quote:
Originally Posted by leavingthebigG View Post

Fortune goes with, "An early sign that Apple may have erred when it set the price of the iPhone 5C so high."

Really?

Wall Street wanted a cheap, junk smartphone from Apple and Apple chose not to produce junk. Now when the higher priced iPhone 5s outsells the less expensive iPhone 5c, Apple erred.

Hmmm...

Maybe Apple wanted to sell more iPhone 5s smartphones to show Wall Street that Apple knows its business better than analyst.

 

Yes, but what's the point of designing, manufacturing, and selling a second less expensive model when it's barely less expensive than the flagship phone?  Who's going to buy the 5C?  The thing still costs $550 off-contract.

 

Apple should have designed a phone that is equivalent to the 3S or 4 in specs and features.  With today's technology I would think that is doable at a very low cost and be able to sell the phone at $400 off-contract and free on-contract.  And I wouldn't consider a 3S or 4 junk.

post #6 of 57
If anything close these proportions are true, Apple will have to cut 5C prices to start at $449 unlocked.

Some of us predicted it on keynote date.
post #7 of 57
Apple just announced: 9 million units!!!!!

WOW!
post #8 of 57
Quote:
Originally Posted by techguy911 View Post
 

 

Yes, but what's the point of designing, manufacturing, and selling a second less expensive model when it's barely less expensive than the flagship phone?  Who's going to buy the 5C?  The thing still costs $550 off-contract.

The same kind who bought 4S in the last year.

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post #9 of 57
Quote:
Originally Posted by anantksundaram View Post

Apple just announced: 9 million units!!!!!

WOW!

Link? I want to read and then gloat, in that order.
post #10 of 57
The 5c price does seem a little close to the 5s, Apple erred in not setting the price of the 5s higher.
post #11 of 57
The 5C will likely be huge around the holidays and carriers will likely offer deals mid cycle. I think, overtime, the 5C will become the most popular iPhone, as it caters to a wider market.

I mean, if you're getting a subsidized smartphone, why wouldn't you pay $99 and get an an iPhone? Or the 4S which is free.
post #12 of 57
Quote:
Originally Posted by Pendergast View Post


Link? I want to read and then gloat, in that order.

 

http://www.apple.com/pr/library/2013/09/23First-Weekend-iPhone-Sales-Top-Nine-Million-Sets-New-Record.html

JLL

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post #13 of 57

Thank you for facilitating my laziness!
post #14 of 57
The charts are upside down, the source loses credibility with me. But the facts are about what we were expecting anyway.
post #15 of 57
Numbers come from app usage? Perhaps that only implies majority of 5s were sold to people who already had iPhones which would also have a library of apps. 5c were new customers who are mainly stock apps and a perhaps 1 or few purchased apps.
post #16 of 57

Hardly surprising, the 5c is over priced. Should have made it $50 - 100 cheaper.

 

Apple decided to increase margins instead of keeping them the same, the 5c is undoubtedly cheaper to produce than the iPhone 5 was. Had the iPhone 5c not been released then the iPhone 5 would be priced at the same.

 

The 5c is a lovely phone, it really is but Apple have been greedy.


Edited by saarek - 9/23/13 at 6:18am
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post #17 of 57
Quote:
Originally Posted by techguy911 View Post

Yes, but what's the point of designing, manufacturing, and selling a second less expensive model when it's barely less expensive than the flagship phone?  Who's going to buy the 5C?  The thing still costs $550 off-contract.

Apple should have designed a phone that is equivalent to the 3S or 4 in specs and features.  With today's technology I would think that is doable at a very low cost and be able to sell the phone at $400 off-contract and free on-contract.  And I wouldn't consider a 3S or 4 junk.

The 3GS and 4 tech can't run iOS 7 properly.
Quote:
Originally Posted by AnalogJack View Post

The 5c price does seem a little close to the 5s, Apple erred in not setting the price of the 5s higher.

Haha.
Quote:
Originally Posted by saarek View Post

Hardly surprising, the 5C is over priced. Should have made it $50 - 100 cheaper

Haha.
post #18 of 57
Quote:
Originally Posted by techguy911 View Post

Yes, but what's the point of designing, manufacturing, and selling a second less expensive model when it's barely less expensive than the flagship phone?  Who's going to buy the 5C?  The thing still costs $550 off-contract.

Been around for a year or two? Ever noticed the previous years phone reduced to this exact same price? Seen the keynotes where Tim talks about how surprised they are at the amount of sales for the previous years models?

Nothing has really changed, apart from now being able to market the mid level phone as a new model. It hasn't even been available for a week!

Who's going to buy the 5c? Probably the similar sorts who bought all those 4s' over the last year. And a few new ones attracted to the pretty colours....
Quote:
Apple should have designed a phone that is equivalent to the 3S or 4 in specs and features.  With today's technology I would think that is doable at a very low cost and be able to sell the phone at $400 off-contract and free on-contract.  And I wouldn't consider a 3S or 4 junk.

My 4 started to run a bit slow and misses out in lots of new features, but like you I don't think it was junk. I would've been happy keeping mine if I didn't wreck it. I can see plenty being happy with that level of phone in a new skin, and for a lower cost.

A 3GS though? Nope. Using one now until 5s released here. Slow and painful. Still a neat gadget for the right price, but for a company that prides itself on cutting edge quality? I couldn't see it.
post #19 of 57
Quote:
Originally Posted by anantksundaram View Post

If anything close these proportions are true, Apple will have to cut 5C prices to start at $449 unlocked.

Some of us predicted it on keynote date.

 

Or, they could just raise 5s production and cut 5c.  I don't think Apple is religious with respect to 5s v. 5c production ratios.

post #20 of 57
Quote:
Originally Posted by anantksundaram View Post

If anything close these proportions are true, Apple will have to cut 5C prices to start at $449 unlocked.

Some of us predicted it on keynote date.

 

Last years phone was always $ 550. This year Apple just increased margins on last years phone.

post #21 of 57
Quote:
Originally Posted by saarek View Post

Hardly surprising, the 5c is over priced. Should have made it $50 - 100 cheaper.

Apple decided to increase margins instead of keeping them the same, the 5c is undoubtedly cheaper to produce than the iPhone 5 was. Had the iPhone 5c not been released then the iPhone 5 would be priced at the same.

The 5c is a lovely phone, it really is but Apple have been greedy.

Ever seen the estimated bill of materials for iPhones? I haven't seen the casing specifically noted, but It doesn't appear to be a huge cost. Everyone who says that plastic case should equal $50 to $100 cheaper phone must be guessing pretty high on manufacturing costs...

In the amounts that sell though, even saving a dollar or two per phone would help provide a bit more pocket change for the company.

What I'd be interested to see is the breakdown of latest phone compared to updated cost for last years phone and the year before.

Memory seems to half its price each year (where's my 32Gb entry level for same $ as last years 16Gb?), but I wonder about other costs?

As someone said recently here too - The plastic 5c makes sense that this year that if making the casing of the 5 was time consuming and would've depleted capacity for making the 5s.
post #22 of 57
Quote:
Originally Posted by AppleInsider View Post


Breaking down adoption of the latest iPhones by carriers, Localytics unsurprisingly found that AT&T was the most popular choice for users.

 

"Unsurprisingly" they didn't!

 

 

Verizon 37% of US market AT&T.... 27%.

post #23 of 57
Quote:
Originally Posted by jungmark View Post

The 3GS and 4 tech can't run iOS 7 properly.

 

You'd better tell Apple that quick. They've mistakenly released iOS 7 for the iPhone 4! :p

post #24 of 57
Quote:
Originally Posted by RichL View Post

You'd better tell Apple that quick. They've mistakenly released iOS 7 for the iPhone 4! 1tongue.gif
Ok. As compared to the 5. 1smile.gif and the 4 may not run iOS 8.
post #25 of 57
Quote:
Originally Posted by RichL View Post

You'd better tell Apple that quick. They've mistakenly released iOS 7 for the iPhone 4! 1tongue.gif

I think by properly for the 4 he means "fully". It's starting to be a big gap between what it can't do compared to latest.

I'm gutted my 1 year old iPad missed out on support for air drop, and my old 4 was starting to feel a bit creaky, and a long way off what I'd expect Apple to release.
post #26 of 57
Quote:
Originally Posted by Rogifan View Post

Why is this even news? Of course 5S is going to be more popular on launch weekend. 5C isn't the kind of phone that people have to have NOW. But I'm sure over time it will sell very well and will probably be Christmas gifts for lots of people.

Quote:
Originally Posted by techguy911 View Post

Yes, but what's the point of designing, manufacturing, and selling a second less expensive model when it's barely less expensive than the flagship phone?  Who's going to buy the 5C?  The thing still costs $550 off-contract.

What you're both missing is that, if the figures are correct, the 5C still sold over 2 M phones in one weekend. How many other phones sold that many in 3 days?

The 5C was a very successful product launch. And when you consider that it contains previous -generation internals (and most phone buyers prefer the latest internals), it's an even more impressive launch - and suggests that it is, and will continue to be, successful.

The problem is that you're comparing it to the incredibly successful iPhone 5S launch - 7 M phones sold in one weekend - rather than comparing it to every other phone on the market.
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post #27 of 57
Quote:
Originally Posted by techguy911 View Post

Yes, but what's the point of designing, manufacturing, and selling a second less expensive model when it's barely less expensive than the flagship phone?  Who's going to buy the 5C?  The thing still costs $550 off-contract.

Apple should have designed a phone that is equivalent to the 3S or 4 in specs and features.  With today's technology I would think that is doable at a very low cost and be able to sell the phone at $400 off-contract and free on-contract.  And I wouldn't consider a 3S or 4 junk.

Uh huh. So Apple shows that the 3.4 times as many people want the latest, top end phone as one that's a single generation behind - and you take that as evidence that they should produce one that's 3 or 4 generations old? Amazing how people manage to delude themselves.

Let's get it right. Apple doesn't sell outdated junk. Period.

However, I have an open mind. If you can show evidence that you know more about product development, branding, and marketing than Apple, I'll be willing to listen to you.
Quote:
Originally Posted by saarek View Post

Hardly surprising, the 5c is over priced. Should have made it $50 - 100 cheaper.

Apple decided to increase margins instead of keeping them the same, the 5c is undoubtedly cheaper to produce than the iPhone 5 was. Had the iPhone 5c not been released then the iPhone 5 would be priced at the same.

The 5c is a lovely phone, it really is but Apple have been greedy.

And, yet, 2 M people bought one in the first weekend. How many of the thousands of Android phones that you keep touting did so well?
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post #28 of 57
Quote:
Originally Posted by techguy911 View Post

Yes, but what's the point of designing, manufacturing, and selling a second less expensive model when it's barely less expensive than the flagship phone?  Who's going to buy the 5C?  The thing still costs $550 off-contract.

Apple should have designed a phone that is equivalent to the 3S or 4 in specs and features.  With today's technology I would think that is doable at a very low cost and be able to sell the phone at $400 off-contract and free on-contract.  And I wouldn't consider a 3S or 4 junk.

Another guy who knows better than Apple.

No matter what Apple does or says the Monday morners are out there second guessing. 9 million phones when all the crybabies were predicting a poor sales weekend until FRIDAY actually arrived. Look at Fortune and all you wannabes. Disgusting. Apple's logistics was way ahead of everyone else and to tell the truth, I believe Apple's analysts are 10X better than any analysts others there who are predicting the future. Nothing innovative? Crappy colors? Nothing new? Go home and buy stock in Google.
post #29 of 57
Quote:
Originally Posted by jungmark View Post


Ok. As compared to the 5. 1smile.gif and the 4 may not run iOS 8.

I believe you don't need the "may" word.

post #30 of 57
Quote:
Originally Posted by jragosta View Post


Uh huh. So Apple shows that the 3.4 times as many people want the latest, top end phone as one that's a single generation behind - and you take that as evidence that they should produce one that's 3 or 4 generations old? Amazing how people manage to delude themselves.

Let's get it right. Apple doesn't sell outdated junk. Period.

However, I have an open mind. If you can show evidence that you know more about product development, branding, and marketing than Apple, I'll be willing to listen to you.
And, yet, 2 M people bought one in the first weekend. How many of the thousands of Android phones that you keep touting did so well?

 

I have not touted any Android phones, I'm not even an Android user.

 

I am not criticizing the design, build quality or feature set of the iPhone 5c. It’s a good phone that will make anyone that owns it very happy.

 

Having said that and as per my previous comment I strongly believe that Apple has been greedy with respect to the pricing of the handset.

 

In previous years the top of the line iPhone would be moved down a notch to be superseded, had the iPhone 5c not been released then you would be able to buy the iPhone 5 at the same price point.

 

The plastic case has the benefit of being cheaper and easier to produce than the metal case of the iPhone 5, the technology is now a year old and so naturally cheaper and easier to produce.

 

The 5c likely represents the highest margined iDevice that Apple has ever sold and yes, I feel this is both greedy and a mistake.

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post #31 of 57
Quote:
Originally Posted by saarek View Post

I have not touted any Android phones, I'm not even an Android user.

I am not criticizing the design, build quality or feature set of the iPhone 5c. It’s a good phone that will make anyone that owns it very happy.

Having said that and as per my previous comment I strongly believe that Apple has been greedy with respect to the pricing of the handset.

In previous years the top of the line iPhone would be moved down a notch to be superseded, had the iPhone 5c not been released then you would be able to buy the iPhone 5 at the same price point.

The plastic case has the benefit of being cheaper and easier to produce than the metal case of the iPhone 5, the technology is now a year old and so naturally cheaper and easier to produce.

The 5c likely represents the highest margined iDevice that Apple has ever sold and yes, I feel this is both greedy and a mistake.

You are being unbelievably ridiculous in your "greedy" comment. You undo some of what you wrote in the preceding paragraphs. You can feel whatever you want, "greedy" or not, you and any other DO NOT have to buy it! I've been in business a long time and those who make comments like this are BASICALLY saying, I own an iPhone, but why should I have to buy another and pay for it all over again? Maybe you don't have the money and that's what drives your greed comment. I don't have a smart phone nor a need for one. But when I do, I will pay the price.
post #32 of 57
Quote:
Originally Posted by saarek View Post
 

 

I have not touted any Android phones, I'm not even an Android user.

 

I am not criticizing the design, build quality or feature set of the iPhone 5c. It’s a good phone that will make anyone that owns it very happy.

 

Having said that and as per my previous comment I strongly believe that Apple has been greedy with respect to the pricing of the handset.

 

In previous years the top of the line iPhone would be moved down a notch to be superseded, had the iPhone 5c not been released then you would be able to buy the iPhone 5 at the same price point.

 

The plastic case has the benefit of being cheaper and easier to produce than the metal case of the iPhone 5, the technology is now a year old and so naturally cheaper and easier to produce.

 

The 5c likely represents the highest margined iDevice that Apple has ever sold and yes, I feel this is both greedy and a mistake.

 

That's an interesting point.  I don't think there is a consensus yet on the iPhone 5 vs iPhone 5C.  From what I can see the 5C has the same specs but has the plastic case vs metal case.  So there is something to be said that you're getting less than in previous years where the previous gen phone was $100 less.

post #33 of 57
Quote:
Originally Posted by saarek View Post

I have not touted any Android phones, I'm not even an Android user.

I am not criticizing the design, build quality or feature set of the iPhone 5c. It’s a good phone that will make anyone that owns it very happy.

Having said that and as per my previous comment I strongly believe that Apple has been greedy with respect to the pricing of the handset.

In previous years the top of the line iPhone would be moved down a notch to be superseded, had the iPhone 5c not been released then you would be able to buy the iPhone 5 at the same price point.

The plastic case has the benefit of being cheaper and easier to produce than the metal case of the iPhone 5, the technology is now a year old and so naturally cheaper and easier to produce.

The 5c likely represents the highest margined iDevice that Apple has ever sold and yes, I feel this is both greedy and a mistake.

Yes, it's probably slightly less expensive to produce, but it's also selling for $100 less than the iPhone 5 did a week ago.

In the end, you don't have any clue what Apple's costs are. You don't know what their margins are. You don't know what their business projections are. You don't know anything except that you want cheaper products.

And, even though you insist that the 5C is overpriced, its launch weekend was one of the best 3 day sales for any phone in history (probably about #3 or 4). I don't think Apple has to justify anything to you.

As soon as you can demonstrate that you know more about Apple's business than they do, then your whining might have some credibility.
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post #34 of 57
Quote:
Originally Posted by bobbyfozz View Post


You are being unbelievably ridiculous in your "greedy" comment. You undo some of what you wrote in the preceding paragraphs. You can feel whatever you want, "greedy" or not, you and any other DO NOT have to buy it! I've been in business a long time and those who make comments like this are BASICALLY saying, I own an iPhone, but why should I have to buy another and pay for it all over again? Maybe you don't have the money and that's what drives your greed comment. I don't have a smart phone nor a need for one. But when I do, I will pay the price.

Well, you are welcome to your opinion and I am entitled to mine. Perhaps you do not see increasing margins that are already the highest in the industry (by a large margin I might add) as greedy, but I do.

 

I'm a long term Apple user and remember well what happened to Apple in the 90's when they decided to coast on their brand name and reputation by keeping obscene margins on outdated hardware. Apple plays well in the top end of the market and their devices are second to none in the areas that really count, I do not have dreams of Apple being number one in market share for smart phones, but stand by my assertion that they have over priced the 5c.

 

I won't dignify your comment regarding my ability to be able afford or not afford a new iPhone with an answer.

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post #35 of 57
well, I don't think its a fair comparison between the 5c&5s! 5c is just a recasing iPhone 5 and assuming if the ratio is true, apple just sold more than 2 million units of an old iPhone on the opening weekend..........that's pretty brilliant!!!!
post #36 of 57
Quote:
Originally Posted by techguy911 View Post

Yes, but what's the point of designing, manufacturing, and selling a second less expensive model when it's barely less expensive than the flagship phone?  Who's going to buy the 5C?  The thing still costs $550 off-contract.

The point is that the old iphone 5 did not have the LTE chip for the new China carrier that is going to be selling the iphone. So instead of now selling a $100-less iphone 5 that is incompatible with the wotld's largest carrier, they can sell the $100-less iphone 5c which is compatible.

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post #37 of 57
Quote:
Originally Posted by matrix07 View Post

I believe you don't need the "may" word.

So true but I don't have any links to back that up.
Quote:
Originally Posted by saarek View Post

Well, you are welcome to your opinion and I am entitled to mine. Perhaps you do not see increasing margins that are already the highest in the industry (by a large margin I might add) as greedy, but I do.

I'm a long term Apple user and remember well what happened to Apple in the 90's when they decided to coast on their brand name and reputation by keeping obscene margins on outdated hardware. Apple plays well in the top end of the market and their devices are second to none in the areas that really count, I do not have dreams of Apple being number one in market share for smart phones, but stand by my assertion that they have over priced the 5c.

I won't dignify your comment regarding my ability to be able afford or not afford a new iPhone with an answer.

Blah blah blah. Apple got in trouble in the 90s because they weren't selling Macs well. Can't say that about the idevices. I believe Apple knows how to price its products better than outsiders.
post #38 of 57
Quote:
Originally Posted by techguy911 View Post
 

 

Yes, but what's the point of designing, manufacturing, and selling a second less expensive model when it's barely less expensive than the flagship phone?  Who's going to buy the 5C?  The thing still costs $550 off-contract.

 

Apple should have designed a phone that is equivalent to the 3S or 4 in specs and features.  With today's technology I would think that is doable at a very low cost and be able to sell the phone at $400 off-contract and free on-contract.  And I wouldn't consider a 3S or 4 junk.

 

I think the pricing was very shrewd on Apple's part.  Apple has the 'Apple Army' that are going to flock and buy all things Apple when they are released.  If they priced the 4c lower, it may have cannibalized the 5s sales.   Most people who 'need' the 5s are going to buy it this week, this month, or at the latest this quarter- depending on their degree of Apple crackheadedness (and I mean that in a good way).  With the pricing this close, the crackheads are definitely going to pick up the 5s because there isn't a big price gap.  Once the spike is over Apple will lower the 5c pricing to where it might get a few bargain shoppers into Apples ecosystem who might have otherwise gone Android.

 

In order to truly compete with the low end phones, Apple would have to build hardware that could barely if even run iOS7.  There is a reason manufacturers still make Gingerbread phones- it has almost zilch for hardware reqs.  I can understand Apple not choosing to do that, they'd have to fragment their ecosystem- but it does mean they cede the low end market to Android.  I'm not sure if its Kit Kat or the next rev in the works that will build upon the same kernel so it will support both the low end and high end android phones.  That might put some pressure on Apple as it will take care of fragmentation from the developers perspective and might put Android over the developer tipping point.

 

With 9mil sales I don't think Apple is any real danger any time soon.

post #39 of 57
Quote:
Originally Posted by AnalogJack View Post

The 5c price does seem a little close to the 5s, Apple erred in not setting the price of the 5s higher.

 

9 million units sold. Some error.

post #40 of 57
Quote:
Originally Posted by Frood View Post

I think the pricing was very shrewd on Apple's part.  Apple has the 'Apple Army' that are going to flock and buy all things Apple when they are released.  If they priced the 4c lower, it may have cannibalized the 5s sales.   Most people who 'need' the 5s are going to buy it this week, this month, or at the latest this quarter- depending on their degree of Apple crackheadedness (and I mean that in a good way).  With the pricing this close, the crackheads are definitely going to pick up the 5s because there isn't a big price gap.  Once the spike is over Apple will lower the 5c pricing to where it might get a few bargain shoppers into Apples ecosystem who might have otherwise gone Android.


Total nonsense.

The 5S is behaving like every other Apple iPhone. They sell a ton of them the first weekend and then continue to sell tons of them all year - until the next model comes out. And they have never cut the price mid-year (other than the first iPhone which was probably too expensive to start since there was no subsidy).
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