Tim Cook: iPhone 5c Wasn't Meant to Be an Entry-Level Phone

[thaifood]

This is one thing the community in general got way too swept up in. Rumors of a lower cost phone went into overdrive and people thought they would be able to pick an iPhone up for 200-300 outright. This is a really silly notion that was further exacerbated by the media jumping on the band wagon.

Once that ball got rolling there were a lot of unrealistic expectation as to the pricing of it. The iPhone C stands for Colour, not Cheap. People need to realise that. It is entirely the community/media's fault for snowballing the whole situation.

 

[musika]

It probably cost them $1 to make the second cable. The first cable cost them probably several hundred thousand or maybe a few million dollars.

Thank you so much for pointing this out. Nobody ever does.

 

[MWPULSE]

My feeling is it'd be iPhone 6, iPhone 5c (with iPhone 5s guts) and… something with iPhone 5 guts.

whaddabout,

An iphone 6, which is all guns blazing, top line.

An iphone 6c, which is the 5s internals-predictably approaching the iPhone 6 battery n camera (upgraded battery n camera from the 5s)

An Iphone 5c, which is still effectively the iPhone 5.

After the 6 rev, I have no idea how that works! lol!

 

[Count Blah]

Perhaps you could provide a list of FREE phones that DO NOT require a contract?

[play cricket chirping noises here]

What other item will you claim that I said, in order to defend your idol?

The phone is not free, as he claims.

 

[rohitp]

Just bought the kids two unlocked 4S iPhones off Craigslist for $275 each and sold their 3GS phones for $75 each. Net $200. Not bad. One of the phones has Applecare for another year! I bought my 64 GB 4S for full price, factory unlocked, when it was the new model.

Plus I'm with T-Mobile paying $87 pm for four lines, inclusive of all taxes and my discounts. (Unlimited calls, texts, and 500GB of high speed data per line).

Do the math. Not too bad at all. We can wait another couple of years until the phones are obsolete and then upgrade again. I have better uses for my money than to throw it away with AT&T and the latest phones...

 

[bbeagle]

The "retina" display alone makes the iPad2 an inferior product at an incredibly bold price of 379€ (in germany) compared to anything available today. I know it's not about specs, but you must be knee-deep in iOS eco system, and some more ..., to not get an nexus10 (399€) instead of an iPad2.

Are you that biased to believe that EVERYONE on the planet bases their decisions only on price? One person can like Pepsi over Coca Cola, even if you don't.

I'm near 40 - I can't see well enough that retina matters to me. That's not a buying decision of mine at all, which is one of the reasons I'm still using an iPad 1. Light weight, ease of use, and LESS customization is what I like. Really. Honestly. A kindle fire is another option I'd choose as well, but never a Nexus. Price is not a significant decision maker for me, what I enjoy better regardless of technical specs is.

 

[MellowFuzz]

dosent make this whole thing look any better to me if it is a mid tier.

following comments relate to off contract prices.

the 4s and 5c are insanely expensive for what they offer and only offering the entry model in 8 gig in this day and age is pathetic. then as mentioned above its selling last years model while they have a pretty firm rule on how long they support older devices with each ios release.

apple does some great and wonderful things but i feel they are so disconnected in some respect its laughable.

It's the Silicon Valley, comfortably high income bubble they live in. They don't get out much to the real world in the rest of the US, let alone the world.

 

[captain kaos]

Personally i think they had a chance to unify things like the OS and connectors, but what they've done is muddy the waters even more. The C should be the low end model, then every year you put last years tech into the colourful case. So next year the C would be the 5s innards. Now you've got confusion, as next year you need something to take over from the 4s. We don't have the 5 anymore, so what becomes the "free" model, the 5c?

 

[kobalap]

It's the Silicon Valley, comfortably high income bubble they live in. They don't get out much to the real world in the rest of the US, let alone the world.

Fiscal year 2013, Apple sold 150 million iPhones. They must know something.

By the way, in the real world, if you are leaving at or near the poverty line or, if you are having to be very conscious about where every nickel goes, then maybe you should focus more on things like paying rent and buying groceries than worrying about the various permutations of iPhones.

Apple makes a premium product. Cost of entry in the U.S. is a 2 year commitment to a cell plan (iPhone 4s). If you gotta choose between food and a cell phone, choose food.

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dosent make this whole thing look any better to me if it is a mid tier.

following comments relate to off contract prices.

the 4s and 5c are insanely expensive for what they offer and only offering the entry model in 8 gig in this day and age is pathetic. then as mentioned above its selling last years model while they have a pretty firm rule on how long they support older devices with each ios release.

apple does some great and wonderful things but i feel they are so disconnected in some respect its laughable.

They are disconnected much in the same way as Nordstrom's is disconnected. You want to buy a suit from Nordstrom's? Its gonna cost you $500 minimum.

If you want a cheap suit, go to K-mart. If you want a "great and wonderful" suit, its gonna cost you some coin.

 

[ouimetnick]

Personally i think they had a chance to unify things like the OS and connectors, but whats they've done is muddy the water even more. The C should be the low end model, then every year you put last years tech into the colourful case. So next year the C would be the 5s innards. Now you've got confusion, as next year you need something to take over from the 4s. We don't have the 5 anymore, so what becomes the "free" model, the 5c?

Perhaps they will reintroduce the iPhone 5. $0.00 for an 8GB iPhone 5 with a contract, $99 for 16GB iPhone 5C, $199 for 32GB iPhone 5C. Hopefully the iPhone 5C will have the iPhone 5S's internals though.

 

[Viscerol]

I love reading the comments on macrumors about how Apple is scamming the consumers with outdated products and the old 30 pin woes and how expensive all this old tech costs. The same people will run out to buy the latest iPad, iPhone or Mac.

If you people are so dissatisfied, why don't you go buy a PC and a galaxy s4 and tablet? I have had both sides if the argument and Apple clearly puts out a superior product. I think almost all here would have to agree, 'cept the trolls.

Some people just cannot be satisfied.

 

[9000]

Yeah, free.

Sure Timmy.

Not all consumers want to lock themselves into onerous 2-year contracts.

You get the best deal using a contract, at least in the U.S. It's not free, of course; and not only is it not free, but in stupid states like California, there's a pretty big tax on the $0 phone purchase itself!

 

[Westacular]

Apple needs to stop selling outdated technology. They're selling the iPhone 4s and the iPad 2 which won't even be compatible with iOS 8 next year. Hell, the iPad 2 is barely compatible with iOS 7. It runs like crap.

Apple has (almost*) always ensured iOS updates are compatible with all models sold in the preceding year. The iPhone 4 got iOS 7. Mark my words: A5-based devices (4s, iPad 2, 3, mini) will run iOS 8, and maybe even 9.

*-I think the only exceptions have been when the smaller-storage iPod Touches have lagged a generation behind the larger models.

 

[Jayse]

Can't wait for the iPhone 6c because all the New Zealanders out there are going to be calling it the iPhone Sexy!

 

[MellowFuzz]

Can't wait for the iPhone 6c because all the New Zealanders out there are going to be calling it the iPhone Sexy!

Surely the Aussies are going to call it the Sexy? The Kiwis will call it the Sucks... See? (!)

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I'm still puzzled by the 5c. Does a 15% price difference really differentiate the three market segments?

5s $650
5c $550
4s $450

Seems like 30% would make more sense. Most other electronics have the low end at 50-60% below the top model.

The real crime with Apple's pricing strategy is the markup for higher flash storage capacities. Just plain insulting to Apple customers.

 

[Count Blah]

Apple has (almost*) always ensured iOS updates are compatible with all models sold in the preceding year. The iPhone 4 got iOS 7. Mark my words: A5-based devices (4s, iPad 2, 3, mini) will run iOS 8, and maybe even 9.

*-I think the only exceptions have been when the smaller-storage iPod Touches have lagged a generation behind the larger models.

I really doubt the iPad2 gets to move into iOS8. Only exception would be late chunks of functionality simply not being available.

 

[WilliamLondon]

IMHO they should have made the 5 free...Great product but stop scamming the consumer.

You've got to be kidding. Do you actually think that "free" is actually free? You do realise that "free" phones are subsidised by the telcos because they *know for certain* they can make money off the contracts that dolts are willing to pay to get the latest phone for "free." Hardee effing harharr.

 

[haruhiko]

Apple needs to stop selling outdated technology. They're selling the iPhone 4s and the iPad 2 which won't even be compatible with iOS 8 next year. Hell, the iPad 2 is barely compatible with iOS 7. It runs like crap.

If they're still selling it, rest assured you will have at least a year of upgrade. The 3GS was officially killed in 2012 and received the iOS 6 upgrade in later that year. So the iPad 2 and the iPhone 4S will receive the iOS 8 next year but not iOS 9.

 

[Aika]

A "mid-tier" phone with last year's tech and at a high end price. Only £50 less than a 5S on contract.

*golf clap*

Even the 4S, the so called "entry offer" is barely in the mid tier price band. £350 for a 2 year old phone with 8GB of storage is really wretched. That's the price a 32GB 5C should be off contract.

The 5S is the only iPhone worth considering right now.

 

[haruhiko]

A "mid-tier" phone with last year's tech and at a high end price. Only £50 less than a 5S on contract.

*golf clap*

Even the 4S, the so called "entry offer" is barely in the mid tier price band. £350 for a 2 year old phone with 8GB of storage is really wretched. That's the price a 32GB 5C should be off contract.

The 5S is the only iPhone worth considering right now.

If you analyse the low, mid and high tier products from other companies, you'll be surprised that usually the high tier products has the best value. If you want to save a bit a choose a cheaper product, design/functionality-wise you always lose more than the money you saved. It's called up-selling.

 

[Aika]

If you analyse the low, mid and high tier products from other companies, you'll be surprised that usually the high tier products has the best value. If you want to save a bit a choose a cheaper product, design/functionality-wise you always lose more than the money you saved. It's called up-selling.

That's not true. There are viable Android and Windows phones at the low (£100-150) and mid tier (£150-300) that represent decent value for money if that's your budget and are considerably cheaper than the flagship phones.

The 5S is probably the best phone out there but I think Apple have read the market completely wrong if they really think the 5C is priced in the mid-tier. People aren't stupid, they see the 5S for just £50 more with the superior camera, fingerprint reader and latest tech and they go for that instead.

 

[alphaod]

I never though of the iPhone 5c as the entry level device. I just wished they used the same parts (A7, storage, camera, Touch ID) in the 5s and the 5c; I would have picked the 5c over the 5s any day of the week [at the same or higher price].

 

[koban4max]

cook is in DENIAL.....

 

[lk400]

Apple needs to stop selling outdated technology. They're selling the iPhone 4s and the iPad 2 which won't even be compatible with iOS 8 next year. Hell, the iPad 2 is barely compatible with iOS 7. It runs like crap.

I guess there are several ways of cutting costs to be able to release a "low end" phone. One is to throw together a phone that didnt cost too much to design using cheap materials and parts. Another is to use existing designs and production lines and older gen tech. Once you have a mature production line running smoothly, it doesnt cost as much to keep it pumping out products.

I guess Apple feel that the latter fits more with their idea of customer experience of an iphone.

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More margin with the 5C compared to the 5, and more for the 5S because of the higher price.

It's just a replacement because of the margin.

I dont know whether there is a higher margin on the 5C compared to a last gen phone - i dont think apple release that information. But even if its true, and I dont doubt that they try to maximise margins (the would have to answer to shareholders if they did otherwise), i think its simplistic to say thats the only reason.

I know there are many people who like the addition of a more "fun" iphone, and many people who prefer plastic over the easy to damage metal. I believe that there are also still supply chain constraints on the 5/5S aluminum shell. It wouldnt make sense to use up production volume on their mid range phone, while taking away from their flagship.

The final point, that most people seem to ignore, is that the 5C is a starting point for their mid range phone. Apple have never come out and said that every year they will repackage last year's phone in a plastic shell and sell it as mid range (in fact, they didnt do it this year as there are some other changes). Most likely the "C" line will develop independently of the flagship line based on what the "C" line customer base look for - it will likely get different functionality and may run on a different update cycle to the flagship.

 

[lobeyonekenobi]

dosent make this whole thing look any better to me if it is a mid tier.

following comments relate to off contract prices.

the 4s and 5c are insanely expensive for what they offer and only offering the entry model in 8 gig in this day and age is pathetic. then as mentioned above its selling last years model while they have a pretty firm rule on how long they support older devices with each ios release.

apple does some great and wonderful things but i feel they are so disconnected in some respect its laughable.

I gotta agree with this, what does 8GB allow you to do, after the OS, 6.5GB a few songs and apps and your struggling, my daughter has a iPhone 4 and after her Instagram photos and stuff she really struggles to manage.

They should make 32GB baseline for new iPads/iPhones etc.. and make the 4S and iPad 2 16 GB if they have to keep them around.

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And most consumers would prefer some hardware subsidization since they're paying for monthly data plans over those 2 years anyway.

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As did mine until I took another reader's suggestion and did a clean install of iOS 7. Now my iPad 2 runs like it did with iOS 6.

Ah does this work? Never thought of that cos mine lags like hell, even when turning the page on my magazines bought from Newstand, I'll give this a try when I get home.