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Alleged cuts to iPhone 5c orders cited as Apple supplier Pegatron's profits disappoint - Page 2

post #41 of 42
Apple's pricing strategy for the 5C is somewhat confusing ($150 cheaper than a 5S, whose going to bother??) until you consider a couple of things:

1. Apple don't aim at the cheap end of the market, they are squarely in the premium product game.
2. Because of (1) they have created somewhat of a price umbrella for the iPhone.
3. They won't release something new and make it cheap from the get go, as it cheapens their brand.
4. They always heavily discount last years iPhone model once this year's model is released.

The above leads me to the conclusion that next year, the 5C will be heavily discounted down to ~$150-$200, thereby allowing Apple to compete with cheaper Android phones as well as having a product to more effectively break in to emerging markets such as China and India. Oh, and it totally negates on the risk of cheapening their brand.

Accordingly, 12 months of reduced demand for one phone seems like a small price to pay.
post #42 of 42
Quote:
Originally Posted by Nek Minute View Post

Apple's pricing strategy for the 5C is somewhat confusing ($150 cheaper than a 5S, whose going to bother??) until you consider a couple of things:

1. Apple don't aim at the cheap end of the market, they are squarely in the premium product game.
2. Because of (1) they have created somewhat of a price umbrella for the iPhone.
3. They won't release something new and make it cheap from the get go, as it cheapens their brand.
4. They always heavily discount last years iPhone model once this year's model is released.

The above leads me to the conclusion that next year, the 5C will be heavily discounted down to ~$150-$200, thereby allowing Apple to compete with cheaper Android phones as well as having a product to more effectively break in to emerging markets such as China and India. Oh, and it totally negates on the risk of cheapening their brand.

Accordingly, 12 months of reduced demand for one phone seems like a small price to pay.

Grammar police: it's "who is ". 1smile.gif

The 5C won't be heavily discounted. It was never meant to outsell the 5S. At least in the US, it's in the top 3 on the four major carriers.
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