Their margins for iPhones are high and I believe is one of the largest among their various product offerings. That said, no I don't think we'll see the 5c replacing the iPod Touch this year. However, come next year, I think it's quite possible for Apple to continue selling the 5c (or a cut down version of it) for around $350 which is around iPod touch territory as a downmarket phone (for prepaid, emerging markets, etc).16GB iPod Touch -- $199
16GB iPhone 5C - $549
Somehow, I think not!
A $350 price cut on the 5C to be a iPod Touch replacement is highly unlikely. Their margins aren't that high to begin with and Apple never participates in the "Race to the bottom".
I think the profit margin is higher for the 5C then that of the metal 5S. The 5S is reported to be in the high 55%.
Their margins for iPhones are high and I believe is one of the largest among their various product offerings. [...] I think it's quite possible for Apple to continue selling the 5c (or a cut down version of it) for around $350[...]
Can someone smarter than me please explain something to me (preferably in words of two syllables or less)?
The difference between an iPhone and an iPod Touch is basically a SIM drawer, chip and antenna, right?
So why does an iPhone cost so much more than an iPod Touch? I understand that some components in the Touch are lower quality than used in the iPhone, but still, couldn't they make a Touch with phone capabilities for $50 more if they wanted to?
Can someone smarter than me please explain something to me (preferably in words of two syllables or less)?
The difference between an iPhone and an iPod Touch is basically a SIM drawer, chip and antenna, right?
I know there are some really cheap unsubsidized phones out there, so how much can these components cost, considering those phones also have batteries, speakers, microphones, displays, etc?
So why does an iPhone cost so much more than an iPod Touch? I understand that some components in the Touch are lower quality than used in the iPhone, but still, couldn't they make a Touch with phone capabilities for $50 more if they wanted to?
I said come next year (and I expect they'll likely cut some more corners if they do). This year, I expect an iPhone 5c 8GB will replace the 4s 8GB as the $0/$449 iPhone.If history is any guide, if they continue to sell it they will only sell the 16GB model and knock only $100 of the price (or $450).
I think the profit margin is higher for the 5C then that of the metal 5S. The 5S is reported to be in the high 55%.
Could not find the 5C margin; but it made of plastic case and last generation components of the 5 buy it only $100 less then the same storage 5S.
That would make the manufacturing cost $247, so as an iPod Touch replacement they would lose $48 for each sold ("but they make it up in volume" ).
However the iPod Touch certainly costs much less to manufacture than the 5C, so why give up any profit at all?
I said come next year (and I expect they'll likely cut some more corners if they do). This year, I expect an iPhone 5c 8GB will replace the 4s 8GB as the $0/$449 iPhone.
A margin of 55% doesn't necessarily mean that the iPhone 5s 16GB with MSRP of $649 costs $247 to manufacture. You have to take into account that resellers, etc. are getting a chunk of that MSRP. It's also quite likely that carriers are paying Apple less than the $649 MSRP.
Actually, that'll be four generations of phones if they do.It won't drop again next year because that would imply Apple would be selling three generations of phones at the same time. In any one market that isn't what Apple does -- they keep the choices simple.
I don't think they'll go down to $199 but I think a $300-350 iPhone is feasible sometime in the future. As for the iPod Touch, from memory, estimated manufacturing and labor costs for the iPod touch 4th gen was ~$150. That's not too far off from the iPhone 5c. Heck, I reckon the iPad Mini probably costs around the same to make as the 5c and yet it sells for $299.Doesn't matter what the 55% is of. The iPod Touch also has a margin and doesn't cost anywhere near $199 MSRP to build. A $199 iPhone is not going to happen as long as Apple can maintain it's image as a high-end product company.