Off contract price is ridiculous. Glad I moved to the Nexus 4 a few months ago. I won't consider another iPhone until I can get one for $399 off contract, at most. Apple already lost me as an iPhone customer, and if they keep this up, they will never get me back. They just don't offer that much extra value to justify the extra cost.
Might as well say bye to iPhone forever then. Apple has never and will never play in that space.
Everyone, bar one guy here, seems to forget that Apple hasn't done anything new here. They are selling last year's phone at the same price they always have. The aluminium chamfered chassis was too expensive to make their margins on the 5, so they had to make it a different way to get there. So they came up with the 5C. Gave it mostly last year's tech with an improved front camera, and then selling it at the same price point as they always have.
The "low cost" aspect of the rumour was a completely failed and misguided guess by the media trying to put two and two together with Apple imminently moving in China, an "emerging market," and Apple simultaneously developing a second model of the iPhone to be released in parallel with the annually updated flagship model.
This was never meant to be low cost or meant for "emerging markets." It was meant for what it was always meant for - a huge subgroup of people that buy on contract but don't want to spend more than the equivalent of $100 up front.
The sense of entitlement on here is utterly ridiculous. If you all don't feel it is worth it, you are perfectly free to take your money elsewhere, or if you love the platform, buy a second hand 5 or get the 4S which is still available and free on contract, especially since you all feel that the value for money is not there on the 5C. Apple is not twisting your arm here.
I, if anyone is interested, will be keeping my 5 and upgrading to the 6 when the time comes. It should be an amazing machine, might even get that 4.5 - 5 inch screen! The 64bit architecture on the A7 with native OS support for it is going to push these machines to whole new levels in the next couple of years, and I am due for an iPad upgrade - will inly be a tough choice if the mini gets both the 64bit A7 and retina display, otherwise it will be the iPad 5 for sure.