The 100 euro/difference is there partly to tempt people considering a 5C to make the extra effort for a 5s. It would be great for Apple if all potential 5C buyers could find the the extra 100.
It seems the 5C is selling in proportionally lower numbers than the 5s but is selling all the same.
The big and killer question is whether Apple is generating the kind of sales volume it estimated and if it isn't, are those 'lost' buyers buying into Android? If the people not buying iPhones, but who are in the market for one, are just holding off for longer, then perhaps Apple can sweat it out but if people look at Apple's offerings and conclude:
Lousy screen size options.
Low capacity (especially on the 4S)
Zero expandability to ease the problems caused by the (expensive) on board memory
No black plastic 5C (what if bright colours aren't my style?)
iPhones are seldom discounted (unlocked) between launches whereas Android phones may be off your price radar at launch but pop onto it a couple of months later.
The result may be they turn to Android and have every one of their smartphone fantasies made reality with one exception: iOS7.
Then the question becomes how many iOS users is Apple losing to Android?
Clearly there is still a lot of room for first time smartphone buyers to get their first phone. That should be a market Apple would want to take a chunk of. More so, if they can do it making a profit while taking sales away from competitors (Samsung probably needs volume more than Apple does). There will also be Android users tired of the issues connected with Android phones (difficult upgrade paths leaving you stuck on old versions of Android and the problems that brings etc).
That brings us full circle and we look at what Apple is offering (the conclusions above). Would an Android user be prepared to sacrifice that much just to avoid Android's habitual problems?
I'd say that on screen size alone, Apple is losing a lot of sales.
Pricing is also an impediment if your can pick up a top of the line Android phone for much less than an equivalent iPhone or go further down the line and get an Android phone that was a flagship phone just months ago at a discounted price.
Capacities are also a problem. it's just plain evil that the 4S comes with just 8GB (seeing as there are zero expandability options). It's also 'old' and people are sensitive to age in this market.
Then we have the emerging markets issue. I think they missed the ball completely there.
If Apple is happy with 5s sales then great. Is Apple happy with 5C and 4S sales? I'd say probably not (if the rumours of cuts in component orders prove to be true).
So what can they do?
I think an easy option would be too chop 200 dollars/euros off the 5C and make a black version. It wouldn't be the first time they got iPhone pricing wrong! Bump the 4S up to 16GB baseline capacity and add a BTO 32GB offering - keeping pricing competitive.
If they planned to have these models right through to October 2014 I think they should re-think the plan.
I was surprised that a larger screen offering wasn't released last month. I think it was a huge mistake but a harder one to fix but they should release one ASAP.
Personally I think Apple is bleeding sales needlessly. I was in the market for an iPhone but have given up on it (it's out of my price range for what I want). Android has all my needs covered except iOS at much better price/quality points. That means one less iOS user and one less sale for Apple. One more Android user and one more sale (to Samsung or Sony).
If Apple has a blowout Christmas then great for them but I have a feeling that whatever the sales, the markets will frown on them for not shifting as many units as they could have and the share price will suffer.
This is conditioned by newer pre xmas offerings. If Apple delivers a killer product(s) next Tuesday then the share price might get off lightly.
However, the underlying problem remains. We're not talking about diving into the low end market but the mid range market with a new phone. I have around 400/450 euros for an unlocked phone but all Apple can offer me is an 'old' 4S that is crippled with 8GB of memory and only one screen size. I don't have the 599 euros required for a 5C and a subsidised plan would tie me to options I don't want.