The 5c is so expensive because it's the only model that will be available in quantity for the foreseeable future. If the price was lower, Apple's profit margin would plummet dramatically. Once 5S production has ramped, the 5c price can be lowered somewhat or incentives offered.
OK, if Apple would have kept the 5, and lowered the price by $100, they would not have spent all that money developing a new phone, and that's profit, while keeping a better built metal phone.
The 5 costs too much to manufacture and support at a reduced price, whereas the 5c reduces manufacturing and support costs to compensate for its lower price.
OK, if Apple would have kept the 5, and lowered the price by $100, they would not have spent all that money developing a new phone, and that's profit, while keeping a better built metal phone.
And somehow the iPhone 5C, designed to reach more people than the iPhone 5 would and make the same, if not more, money on every single unit… isn't profit?
Otherwise, why assume Apple should keep doing things as in the past? Why should they not product a more mass-appeal (pricewise) phone, instead of just doing what they've been doing?
I don't think the cases are as bad as some people are making them out to be. Bright, clashing neon colors were very popular in the 80's. Being a product of the 80's, these bring back fond memories and seem very retro to me. I figured the cases were going to be pastel to match iOS 7, but the theme of "bright" still applies to both to tie them together.
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*
I agree with everyone. The price is a major missed opportunity from Apple.
People said the same thing about the iPad Mini. I don't think the Mini's are struggling to gain traction in the market.
Like a few others have said, I guess it will be pretty subsidised on DoCoMo and China Mobile, helping it sell well in the Asian markets, in addition to the usual launch-day markets.
People said the same thing about the iPad Mini. I don't think the Mini's are struggling to gain traction in the market.
Like a few others have said, I guess it will be pretty subsidised on DoCoMo and China Mobile, helping it sell well in the Asian markets, in addition to the usual launch-day markets.
The iPad Mini was at least a substantial enough discount from the main iPad.
The 5C is nearly the same price as the 5S with HALF as many features and a plastic body versus a chamfered metal body.
The entire exercise of the 5C will in the long run pad Apple's wallets and not give consumers a more accessible iPhone.
We don't know that China Mobile will subsidize the 5C, but if they do only a fraction of the people on their network would qualify for a subsidized phone plan.
That's a huge missed opportunity right there in my opinion.
It's a phone that parents can buy their kids. The kids can save their pocket money and buy the hideous cases and think it looks cool (we all know that kids know nothing).
Now, where is that guy from last week who insisted that Apple would never release a coloured phone with a matching wallpaper?
The 5C will be popular, of course it will. I'm just not convinced by the colours. I was hoping for a good orange colour.
It's a phone that parents can buy their kids. The kids can save their pocket money and buy the hideous cases and think it looks cool (we all know that kids know nothing).
Now, where is that guy from last week who insisted that Apple would never release a coloured phone with a matching wallpaper?
The 5C will be popular, of course it will. I'm just not convinced by the colours. I was hoping for a good orange colour.
Kids are the next generation. They learn. But having prejudice like yourself probably wouldn't be able to see the greatness of them.
It's a phone that parents can buy their kids. The kids can save their pocket money and buy the hideous cases and think it looks cool (we all know that kids know nothing).
Now, where is that guy from last week who insisted that Apple would never release a coloured phone with a matching wallpaper?
The 5C will be popular, of course it will. I'm just not convinced by the colours. I was hoping for a good orange colour.
I felt the opposite.
I like the cases Apple designed for the 5C. It helps differentiate the C and make it special. Without them the 5C looks like a 5 in a plastic case itself...
I like the cases Apple designed for the 5C. It helps differentiate the C and make it special. Without them the 5C looks like a 5 in a plastic case itself...
The 5c is so expensive because it's the only model that will be available in quantity for the foreseeable future. If the price was lower, Apple's profit margin would plummet dramatically. Once 5S production has ramped, the 5c price can be lowered somewhat or incentives offered.
I believe this is the correct answer.
It's telling that the 5S won't be available for preorder.
If Apple had lowered the price by $100, EPS would have plummeted
Comments
The 5c is so expensive because it's the only model that will be available in quantity for the foreseeable future. If the price was lower, Apple's profit margin would plummet dramatically. Once 5S production has ramped, the 5c price can be lowered somewhat or incentives offered.
OK, if Apple would have kept the 5, and lowered the price by $100, they would not have spent all that money developing a new phone, and that's profit, while keeping a better built metal phone.
The 5 costs too much to manufacture and support at a reduced price, whereas the 5c reduces manufacturing and support costs to compensate for its lower price.
OK, if Apple would have kept the 5, and lowered the price by $100, they would not have spent all that money developing a new phone, and that's profit, while keeping a better built metal phone.
And somehow the iPhone 5C, designed to reach more people than the iPhone 5 would and make the same, if not more, money on every single unit… isn't profit?
… Paying attention? They just did. iPhone 5C.
Defend this TS
Already did. Find Marvin's post about case colors.
I don't think the cases are as bad as some people are making them out to be. Bright, clashing neon colors were very popular in the 80's. Being a product of the 80's, these bring back fond memories and seem very retro to me. I figured the cases were going to be pastel to match iOS 7, but the theme of "bright" still applies to both to tie them together.
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*
Nope but there may soon be an Amazon phone that's free off contract lol
Funny how rumor has been taken as fact, huh. "Everyone" "knew" that the iPhone 5C was going to be a cheaper alternative…
Agree. To those pundits and analysts who insisted that Apple *needed* a cheaper iPhone, Apple just gave them the middle finger today.
I agree with everyone. The price is a major missed opportunity from Apple.
People said the same thing about the iPad Mini. I don't think the Mini's are struggling to gain traction in the market.
Like a few others have said, I guess it will be pretty subsidised on DoCoMo and China Mobile, helping it sell well in the Asian markets, in addition to the usual launch-day markets.
The iPad Mini was at least a substantial enough discount from the main iPad.
The 5C is nearly the same price as the 5S with HALF as many features and a plastic body versus a chamfered metal body.
The entire exercise of the 5C will in the long run pad Apple's wallets and not give consumers a more accessible iPhone.
We don't know that China Mobile will subsidize the 5C, but if they do only a fraction of the people on their network would qualify for a subsidized phone plan.
That's a huge missed opportunity right there in my opinion.
Now, where is that guy from last week who insisted that Apple would never release a coloured phone with a matching wallpaper?
The 5C will be popular, of course it will. I'm just not convinced by the colours. I was hoping for a good orange colour.
It's a phone that parents can buy their kids. The kids can save their pocket money and buy the hideous cases and think it looks cool (we all know that kids know nothing).
Now, where is that guy from last week who insisted that Apple would never release a coloured phone with a matching wallpaper?
The 5C will be popular, of course it will. I'm just not convinced by the colours. I was hoping for a good orange colour.
Kids are the next generation. They learn. But having prejudice like yourself probably wouldn't be able to see the greatness of them.
I felt the opposite.
I like the cases Apple designed for the 5C. It helps differentiate the C and make it special. Without them the 5C looks like a 5 in a plastic case itself...
I felt the opposite.
I like the cases Apple designed for the 5C. It helps differentiate the C and make it special. Without them the 5C looks like a 5 in a plastic case itself...
Couldn't have said it better myself.
I believe this is the correct answer.
It's telling that the 5S won't be available for preorder.
If Apple had lowered the price by $100, EPS would have plummeted
Plastique with tangy colourways.
[URL=http://www.1iphone5wallpaper.com/c/panorama/1-iPhone-5-Wallpaper-Devils-Marbles.htm][IMG ALT=""]http://forums.appleinsider.com/content/type/61/id/31399/width/500/height/1000[/IMG][/URL]
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I'm reading otherwise, spambot.