It looks like they're going to use the First World to amortize the new radios and case tooling, to subsidize, in other words, selling these phones for lesser margins later in the Third World. (Apologies for using these outdated, politically incorrect terms.)
Look for these prices to start dropping after they start selling through China Mobile. I think they're giving them a deal, and we in the West are part of the setup.
Yeah, I know, I'm making stuff up, but there's no figuring out this company without using some imagination. One thing I do know is that Tim Cook knows what he's doing, and we don't.
Oh, and the colors clearly show that the intended market is young Western metrogenders and Asians.
Why would Tim cook definitely know what he is doing any more than Elop or Ballmer. It's possible he is out if his depth.
It looks like the 5C was their way of improving margins. The 5S is clearly the better product and having plastic components will lower their build costs. Having the upsell to the 5S increases their average selling price. If they'd kept the iPhone 5 around, that would have lowered margins and driven people to the 5 over the 5S.
Some analysts were probably excited to see the 5C as they've been banging on about Apple making a cheaper iPhone for emerging markets. Sitting between the 4S and 5S, the 5C isn't the cheap phone they were looking for.
A play for higher ASP in a commodified market is lunacy.
Anyone knows how they customize iOS7 to match the color of the backplate? Many possibilities come to mind, the most obvious one being an assembly/QC technician *programming* it in as one of the last steps after *burn-in*. But I wonder if Ive has designed in something to make it automatic. That would be way cool.
They offer the choices as different wallpaper. Chose one to match the case or the cover...or something else completely. It's also easy to chose a photo you've taken as well.
Key for Apple is ability to price these phones for $20 USD per month deal. If they can get some kind of long term contract pricing like that, then this will take off in China and India. Consumers don't seem to care about length of deal, but how much they need to pay per month.
India has had some special arrangements for a while now. Reports are it's well received and perhaps that model will spread where carriers allow it.
Why would Tim cook definitely know what he is doing any more than Elop or Ballmer. It's possible he is out if his depth.
Yep, that's why he's CEO of the most successful company on Earth right now, why he was the best COO perhaps of all time, and why people keep buying the products Apple makes, huh.
Hmmm not your 499, 399, 299, 199 but $99, that s roughtly Rs 7,500 Indian rupees, ths going to smash Samsung, Nokia and other wannabe straight on nose! I am expecting Apple to taker BIG marketshare in India.
Will watch the presentation in peace and quiet now.
Soul
P.S. that maybe supported cost in USA, so wait for unlocked cost, hopefully, not big increase.
It looks like the 5C was their way of improving margins. The 5S is clearly the better product and having plastic components will lower their build costs. Having the upsell to the 5S increases their average selling price. If they'd kept the iPhone 5 around, that would have lowered margins and driven people to the 5 over the 5S.
Some analysts were probably excited to see the 5C as they've been banging on about Apple making a cheaper iPhone for emerging markets. Sitting between the 4S and 5S, the 5C isn't the cheap phone they were looking for.
Well, this way no one can make jokes about the "C" in 5C standing for "cheap." But seriously, Apple wasn't turning to plastic to submarine the price, they are looking to use color to be their marketing tool for the next couple years or so and plastic is the way to do that best. Apple needs to keep that caché aura about its products, even while moving downward with the price... but not meeting the competition with price. With enough margin built into the price, the product can be highly marketed. The combination of Apple stores and heavy marketing will work to Apple's benefit in the long run.
A $300 iPhone would win in the short run, but lose in the long run because it leverages nothing Apple has unique. It really is not smart for Apple to engage in a price battle because that plays to Samsung's strength. Cede the low end and go for the mid and upper market segments, that's where customer loyalty and the money is at.
Hmmm not your 499, 399, 299, 199 but $99, that s roughtly Rs 7,500 Indian rupees, ths going to smash Samsung, Nokia and other wannabe straight on nose! I am expecting Apple to taker BIG marketshare in India.
But wasn't your original point that it needed to be 'cheap' off-contract? That's the contract price. Off-contract, it's $549. If there's a $20 a month contract in India that affords the contract price, it will sure be big.
At the end, we should stop expecting Apple to be ... Samsung.
As stated many times by Tim Cook, its two main criteria in a product are : customer satisfaction and "usefulness" of the product. I have few doubts that the iPhones presented today will both have high user ratings. I also have few doubts that they will be "useful".
People feared Apple won't be the same after Steve Jobs. The good news: it is the same company. How many times S. Jobs stated he did not care about share markets? That he wanted to make great products before all (people should stop complaining about the "plastic" iPhone before using one)?
This good news comes with a price however... And "no" I do not understand their pricing strategy between the 5c and 5s : )
From today, I'll stop believing rumors about "cheap" products from Apple! That won't happen any soon. It's not necessarily a bad news.
I think a lot of people are missing the picture here...Apple does not want customers in the US/EU to buy the 5C, they want you to buy the 5S. The 5c is aimed at China, India, Brazil and other emerging markets. My guess is that we will quickly see the details Apple has worked out with carriers like China Mobile to offer the 5c at very affordable prices in these markets. The 5c is a world phone specifically designed for Asia and other emerging markets...and it will sell very well!!
Well on the plus side my iphone 5 will hold it's aftermarket value till iphone 6. I can't imagine any adult males wanting those terrible colors on the 5c. The lumia colors are way nicer imo.
But wasn't your original point that it needed to be 'cheap' off-contract? That's the contract price. Off-contract, it's $549. If there's a $20 a month contract in India that affords the contract price, it will sure be big.
From a Chuck Jones Forbes article there's a 5,056 Rupee iPhone 5 offer ($93) that The Mobilestore in India is reported to have attributed to their tripling sales while June Quarter results were reported up 400%. So there's been flexibility overseas.
It seems like this will make people want the iphone 5 more, if they don't like the colors and if the starting price is 549 off contract, then my iphone 5 64 gb should fetch a pretty penny.
Well on the plus side my iphone 5 will hold it's aftermarket value till iphone 6. I can't imagine any adult males wanting those terrible colors on the 5c. The lumia colors are way nicer imo.
Far, far more than "adult males" buy smartphones.
And any male adult enough will go for the 5s over the old 5.
But wasn't your original point that it needed to be 'cheap' off-contract? That's the contract price. Off-contract, it's $549. If there's a $20 a month contract in India that affords the contract price, it will sure be big.
But you forgot to quote my P.S. comments, since I did state that was US supported cost and we will have to understand the unlocked cost in India, funny why would you quote, half of my comments.
A $300 iPhone would win in the short run, but lose in the long run because it leverages nothing Apple has unique. It really is not smart for Apple to engage in a price battle because that plays to Samsung's strength. Cede the low end and go for the mid and upper market segments, that's where customer loyalty and the money is at.
I don't know if I fully agree with this. Thinking long term, how many new users would a cheaper 5C have brought into the apple ecosystem. How many more apps/itunes/accessories/applecare plans purchased. Think of the 5C as a gateway drug, once you get the people sucked in to iEverything, Android and Samsung have little of value to offer (at the cheaper end). Next iteration, the new apple user finds they can get a decent price for their used 5C and are likely to consider upgrading to the 5S level model.
Most cheap android phones we ever had were worth squat after 2 years.
A play for higher ASP in a commodified market is lunacy.
Smart Phones are becoming a commodified market, but Apple is avoiding that aspect of the smart phone market. There's no money there. For customers that want a different experience, Apple wants to fill that desire. So, while General Motors sells more commodity cars then prestige cars, Prestige car companies that don't offer commodity cars, sell more prestige cars then does General Motors. As long as Apple doesn't appeal to or act like they are in the commodity product business, they can ask for the margins of a jewelry store and lead the market just as they have done so for decades.
From a Chuck Jones Forbes article there's a 5,056 Rupee iPhone 5 offer ($93) that The Mobilestore in India is reported to have attributed to their tripling sales while June Quarter results were reported up 400%. So there's been flexibility overseas.
I live in India and did not know, must investigate. I can buy one for Diwali lottery, we have every year.
Remember that scene of young Jonny, Steve and the sketch of the future iMac in the "Jobs" movie? Young devilishly gifted Jonny does ship a awful design and waits for Jobs to pay attention and push him "Tell me what you sincerely think..."
The movie in itself might not have been the best one, but they appear to have a clue...
Comments
Why would Tim cook definitely know what he is doing any more than Elop or Ballmer. It's possible he is out if his depth.
A play for higher ASP in a commodified market is lunacy.
They offer the choices as different wallpaper. Chose one to match the case or the cover...or something else completely. It's also easy to chose a photo you've taken as well.
Key for Apple is ability to price these phones for $20 USD per month deal. If they can get some kind of long term contract pricing like that, then this will take off in China and India. Consumers don't seem to care about length of deal, but how much they need to pay per month.
India has had some special arrangements for a while now. Reports are it's well received and perhaps that model will spread where carriers allow it.
Yep, that's why he's CEO of the most successful company on Earth right now, why he was the best COO perhaps of all time, and why people keep buying the products Apple makes, huh.
Hmmm not your 499, 399, 299, 199 but $99, that s roughtly Rs 7,500 Indian rupees, ths going to smash Samsung, Nokia and other wannabe straight on nose! I am expecting Apple to taker BIG marketshare in India.
Will watch the presentation in peace and quiet now.
Soul
P.S. that maybe supported cost in USA, so wait for unlocked cost, hopefully, not big increase.
Well, this way no one can make jokes about the "C" in 5C standing for "cheap." But seriously, Apple wasn't turning to plastic to submarine the price, they are looking to use color to be their marketing tool for the next couple years or so and plastic is the way to do that best. Apple needs to keep that caché aura about its products, even while moving downward with the price... but not meeting the competition with price. With enough margin built into the price, the product can be highly marketed. The combination of Apple stores and heavy marketing will work to Apple's benefit in the long run.
A $300 iPhone would win in the short run, but lose in the long run because it leverages nothing Apple has unique. It really is not smart for Apple to engage in a price battle because that plays to Samsung's strength. Cede the low end and go for the mid and upper market segments, that's where customer loyalty and the money is at.
But wasn't your original point that it needed to be 'cheap' off-contract? That's the contract price. Off-contract, it's $549. If there's a $20 a month contract in India that affords the contract price, it will sure be big.
At the end, we should stop expecting Apple to be ... Samsung.
As stated many times by Tim Cook, its two main criteria in a product are : customer satisfaction and "usefulness" of the product. I have few doubts that the iPhones presented today will both have high user ratings. I also have few doubts that they will be "useful".
People feared Apple won't be the same after Steve Jobs. The good news: it is the same company. How many times S. Jobs stated he did not care about share markets? That he wanted to make great products before all (people should stop complaining about the "plastic" iPhone before using one)?
This good news comes with a price however... And "no" I do not understand their pricing strategy between the 5c and 5s : )
From today, I'll stop believing rumors about "cheap" products from Apple! That won't happen any soon. It's not necessarily a bad news.
I think a lot of people are missing the picture here...Apple does not want customers in the US/EU to buy the 5C, they want you to buy the 5S. The 5c is aimed at China, India, Brazil and other emerging markets. My guess is that we will quickly see the details Apple has worked out with carriers like China Mobile to offer the 5c at very affordable prices in these markets. The 5c is a world phone specifically designed for Asia and other emerging markets...and it will sell very well!!
But wasn't your original point that it needed to be 'cheap' off-contract? That's the contract price. Off-contract, it's $549. If there's a $20 a month contract in India that affords the contract price, it will sure be big.
From a Chuck Jones Forbes article there's a 5,056 Rupee iPhone 5 offer ($93) that The Mobilestore in India is reported to have attributed to their tripling sales while June Quarter results were reported up 400%. So there's been flexibility overseas.
It seems like this will make people want the iphone 5 more, if they don't like the colors and if the starting price is 549 off contract, then my iphone 5 64 gb should fetch a pretty penny.
Well on the plus side my iphone 5 will hold it's aftermarket value till iphone 6. I can't imagine any adult males wanting those terrible colors on the 5c. The lumia colors are way nicer imo.
Far, far more than "adult males" buy smartphones.
And any male adult enough will go for the 5s over the old 5.
But you forgot to quote my P.S. comments, since I did state that was US supported cost and we will have to understand the unlocked cost in India, funny why would you quote, half of my comments.
I guess the "s" in iphone5s stands for jump the shark. Thanks for pointing it out.
A $300 iPhone would win in the short run, but lose in the long run because it leverages nothing Apple has unique. It really is not smart for Apple to engage in a price battle because that plays to Samsung's strength. Cede the low end and go for the mid and upper market segments, that's where customer loyalty and the money is at.
I don't know if I fully agree with this. Thinking long term, how many new users would a cheaper 5C have brought into the apple ecosystem. How many more apps/itunes/accessories/applecare plans purchased. Think of the 5C as a gateway drug, once you get the people sucked in to iEverything, Android and Samsung have little of value to offer (at the cheaper end). Next iteration, the new apple user finds they can get a decent price for their used 5C and are likely to consider upgrading to the 5S level model.
Most cheap android phones we ever had were worth squat after 2 years.
Smart Phones are becoming a commodified market, but Apple is avoiding that aspect of the smart phone market. There's no money there. For customers that want a different experience, Apple wants to fill that desire. So, while General Motors sells more commodity cars then prestige cars, Prestige car companies that don't offer commodity cars, sell more prestige cars then does General Motors. As long as Apple doesn't appeal to or act like they are in the commodity product business, they can ask for the margins of a jewelry store and lead the market just as they have done so for decades.
I live in India and did not know, must investigate. I can buy one for Diwali lottery, we have every year.
Remember that scene of young Jonny, Steve and the sketch of the future iMac in the "Jobs" movie? Young devilishly gifted Jonny does ship a awful design and waits for Jobs to pay attention and push him "Tell me what you sincerely think..."
The movie in itself might not have been the best one, but they appear to have a clue...