Apple Announces Colorful New iPhone 5c, Starting at $99 on Two-Year Contract

[gto55]

 

[milo]

Their stock has dropped $14 since this morning.

I just checked and it's down about two percent. That's typical, generally there are lots of rumors beforehand and there's always a drop in stock price the day of announcements, even ones that turned out to be record setting products.

Stock price the day of an announcement is absolutely worthless when it comes to predicting how a new Apple product will sell.

 

[Elbon]

With Jobs dead, all attention to the slightest detail is weaning.

Apparently like the attention you put into your spelling.

 

[SirLance99]

New iPhone5C and iShoes

 

[WilliamLondon]

I disagree consumers are reading more reviews and understanding simple technology better. If the 5C & 5s looked the same maybe, but that home button and housing stands out right off the bat with the side by side.

When the customer ask what's the difference between the 5C & 5S and the salesman tells them, 5S has a new faster processor, the finger reader and explains what can be done with it, reworked home button, better cameras, more elegant housing & the 5C is basically last years phone it's not going to be hard to decide on the 5S and then throw in the salesman will say if you every want a color case you can just buy a slip here, flea market or ebay.

Trends say otherwise. We've seen a general moving away from tech specs as product features that are marketed for quite some time, the average consumer never knew what they were asking for or what the spec actually meant anyway (or why they should prefer it over the same item with 1 less in the name, e.g. 386 vs. 486). They aren't marketing the 5c as the "slower iPhone", apps won't run differently on it, people understand "the sales pitch" and I think they are wise enough to understand that if there will be no apps that won't run on the 5c, and to be honest it's the same as the iPhone 5 which has never been considered a "slow phone", why not just save the $100 and spend it on something else.

The average user won't realise in every day, common, average use any difference between the two phones (we're talking average and common users here), save the money in these days of austerity, average consumers aren't interested in keeping up with chip details, they want to know if it'll take pictures, if it'll connect to Facebook, if it'll make calls and run *all* the apps on the AppStore, and except for a small portion of the population, they don't need anything more than the 5c offers.

 

[MyopicPaideia]

It's not about entitlement--it's about choices. I really wanted to buy my first iphone. But when they price them at triple the cost of an android competitor, it's really hard to consider them as a viable option. I would pay a premium of $50, or $100, or possibly even $150 over say a Nexus 4 which will perform similarly, because I think iOS is superior to Android. But The 5C is priced $350 more than the Nexus 4, which is just insane. So many people will choose the cheaper option.

I don't own a smartphone, but I do own Apple and iOS devices. I would like a smartphone, but Apple refuses to make one at what I (and now the majority of phone buyers) consider a reasonable price. They are losing market share, and I think this will continue or even increase with the 5C's absurd pricing. Apple penetrated the mp3 player market with a variety of products -- ipod, ipod touch, ipod nano, ipod mini, but they still really only have one phone (the price difference between 5C and 5S is negligible). People would love an affordable iphone.

If nothing else, take the ipod touch ($230 retail) and add on the cellular radio that is in the ipad/mini ($130 retail) and you have a $360 phone. Still way cheaper than the 5C and they don't even have to design anything and they keep existing profit margins. But no, we get this. Our reaction is not entitlement, it's disappointment that we won't be part of the superior Apple ecosystem at these insane prices.

That is fair enough, but these insane prices are actually unchanged price structures from since the original iPhone was released. Apple has never been about market share, it has always been about premium products. The fact they have gotten to enjoy both in the last 5-6 years is a very recent phenomenon.

You sound like a perfect candidate for a second hand iPhone 5 or 4S. What is stopping you? You'll still have a phone that outperforms anything in its price class or below, and you will be in the iOS ecosystem.

 

[CapnJackGig]

Low cost...only 549 dollars. LOL Apple. No thanks, I'll just buy the infinitely superior Lumia phones.

 

[Syk]

BUT if one of those customers has a scrap of common sense (rare in this world I know) they'll realise that they don't necessarily need those additional things.

It's swings and roundabouts really. At first I was a bit miffed by the 5C price but the more I've thought about it in relation to the plan I use it is an ok deal.

Still a bit confused as to why they dropped the 5 all together though.

May not need them at the time but an update or two later they would be nice and then if the finger reader takes off in a few months with different things, you're going to wish you had spent the $100

They dropped it because the 5 is the 5C and would lead to confusion but I think apple will be making more on the 5C vs the 5 because of material cost of using plastic. Win for Apple

 

[slu]

The prices of high end flagship smart phones are not dropping in general, actually, are they? Outliers aside I mean. What does an S4 cost off contract? Note 2? HTC One? S3 even?

The issue seems to be more of an expectation that this was going to be a somehow significantly lower cost phone - an expectation created by the media based on trying to tie together different rumours - and since lots of people wanted to believe it, now they are upset it hasn't come to pass.

The sense of entitlement I am describing comes not from the reaction to the price, but more from the disappointment of Apple not delivering on this misguided expectation that has been built up, and the subsequent ultimatum and threatening that each individual poster has done saying they will leave the platform unless Apple corrects or changes or fixes things to fulfil that expectation.

You are right. Prices of flagship phones are not dropping. The 5C is most certainly not flagship though. Galaxy S3 off contract goes for about $400 unlocked according to Amazon. Seems like a pretty good comparison for the 5C to me and about the price point people would like to see.

As for your second point, again you said people should take their money elsewhere if they don't like it, and when they say that is what they are going to do, you say they are "threatening" to leave the platform and are "entitled", but isn't that exactly what you originally suggested people do? I don't get it.

By the way, AAPL is down $11.53 as I type this (or 2.28%), so it seems like the market is not too impressed either.

 

[danakin]

Apologies if this has already been covered:

In Canada this is the off-contract pricing:

16 GB - $599
32 GB - $719

More than I would have thought, but not surprising.

 

[Syk]

First off, no salesperson will ever list all those features of the 5S. 99% of customers will not even care about most of those features. The only 2 features they really added that customers will care about is the fingerprint reader and a better camera. But if a person already has an iPhone they are probably already satisfied with their camera. It will be a tough sale for sure. Obviously, current iPhone users will choose the 5S. But it remains to be seen if the new features are important enough to new customers to buy the 5S over the 5C. Especially when contract prices are going to be so low to walk out of the door with the 5C.

I would and did when I was in sales and someone asked me the difference between two similar items. I would tell them the truth and let them decide. Most would ask me what would I do and I would tell them my needs aren't yours but then I would explain why I would choose one or the other.

I guess I just see things differently because if I can spend $100, I can spend $100 more and get the top of the line. If $100 more was going to break me I'd get the free iphone on contract

 

[iPie]

Trends say otherwise. We've seen a general moving away from tech specs as product features that are marketed for quite some time, the average consumer never knew what they were asking for or what the spec actually meant anyway (or why they should prefer it over the same item with 1 less in the name, e.g. 386 vs. 486). They aren't marketing the 5c as the "slower iPhone", apps won't run differently on it, people understand "the sales pitch" and I think they are wise enough to understand that if there will be no apps that won't run on the 5c, and to be honest it's the same as the iPhone 5 which has never been considered a "slow phone", why not just save the $100 and spend it on something else.

The average user won't realise in every day, common, average use any difference between the two phones (we're talking average and common users here), save the money in these days of austerity, average consumers aren't interested in keeping up with chip details, they want to know if it'll take pictures, if it'll connect to Facebook, if it'll make calls and run *all* the apps on the AppStore, and except for a small portion of the population, they don't need anything more than the 5c offers.

That's why Android is gaining market share. Most consumers would be completely satisfied with a 200 euro phone.

 

[Neanderphil]

5c Vs Touch

I really feel that apple have slipped up with the aesthetics of the new iPhone 5C. In my opinion the iPod touch has a more elegant design. I find the black front clashes with the available colours and would have preferred a white option, or the same colour as the rest of the case.

 

[MyopicPaideia]

You are right. Prices of flagship phones are not dropping. The 5C is most certainly not flagship though. Galaxy S3 off contract goes for about $400 unlocked according to Amazon. Seems like a pretty good comparison for the 5C to me and about the price point people would like to see.

As for your second point, again you said people should take their money elsewhere if they don't like it, and when they say that is what they are going to do, you say they are "threatening" to leave the platform and are "entitled", but isn't that exactly what you originally suggested people do? I don't get it.

By the way, AAPL is down $11.53 as I type this (or 2.28%), so it seems like the market is not too impressed either.

iPhone 5C is a much better phone than the S3, I would think anyone would be willing to pay more for it objectively speaking, unless you like the bigger screen size.

You should know better than anyone that the stock price always goes down on launch day. If I remember correctly it went down more last year when the 5 was released, and that was the best selling phone in Apple's history. It went down even more the year before with the 4S release, though that was more likely due to another minor event in Apple's history that coincided with that release.

All I am saying is that people seem to feel that Apple has let them down personally by not releasing a low cost phone today. Yes leave the platform if you want, but shaking your fist and screaming out, "You dirty Apple, you!! You'll get yours! You'll never get my business again!" smacks of a bitterness born of a personal slight, that's all.

 

[spicynujac]

That is fair enough, but these insane prices are actually unchanged price structures from since the original iPhone was released.
You sound like a perfect candidate for a second hand iPhone 5 or 4S. What is stopping you?

A lot has changed since the original iphone; namely Android. And one thing about used apple products--they barely lose value! Iphone 4S or 5 on craigslist are going for ~$400+. I'll probably just buy an ipad/mini and not worry about having a smartphone. Honestly I think smartphones are overrated Give me super long talk time and good audio quality and.. well that's about it. I have other devices to browse the web, play music, and use apps with. But if Apple would make a budget phone... (the way they did a budget mp3 player)...

 

[Syk]

Trends say otherwise. We've seen a general moving away from tech specs as product features that are marketed for quite some time, the average consumer never knew what they were asking for or what the spec actually meant anyway (or why they should prefer it over the same item with 1 less in the name, e.g. 386 vs. 486). They aren't marketing the 5c as the "slower iPhone", apps won't run differently on it, people understand "the sales pitch" and I think they are wise enough to understand that if there will be no apps that won't run on the 5c, and to be honest it's the same as the iPhone 5 which has never been considered a "slow phone", why not just save the $100 and spend it on something else.

The average user won't realise in every day, common, average use any difference between the two phones (we're talking average and common users here), save the money in these days of austerity, average consumers aren't interested in keeping up with chip details, they want to know if it'll take pictures, if it'll connect to Facebook, if it'll make calls and run *all* the apps on the AppStore, and except for a small portion of the population, they don't need anything more than the 5c offers.

True most item specs are more than what most people will use but if I went in a store and saw the two and both was marked as new. I would ask what's the difference. The housing, cam would already make it work spending more. Yeah could save $100 by getting the 5C or I could just save all my money and get the freebie.

I guess we'll see how well the repackaged iPhone5 sells. I don't think it'll have the impact that the iPad mini did.

I don't know it just seems the repackaged iPhone5 is getting more fanfare from Apple than the 5s

 

[Tony0693]

Wish this was the lineup right now

iPhone 5s - 649$
iPhone 5c - iPhone 5 internals, iPod touch casing style with colours - 499$
iPhone 4c - iPhone 4s internals, bump to support LTE, plastic casing with colours - 349$

Every price point, all great phones.

 

[Gym Hellwig]

$599 in Canada. Good luck selling that cheap looking piece of crap, Apple.

BWAHAHAHAHAHAHAHAHAHAHAHAHA!!!

 

[braintumor]

Wish this was the lineup right now

iPhone 5s - 649$
iPhone 5c - iPhone 5 internals, iPod touch casing style with colours - 499$
iPhone 4c - iPhone 4s internals, bump to support LTE, plastic casing with colours - 349$

Every price point, all great phones.

Yes, that is something everybody could live with, apple would still make lots of $$$ (i guess even more then now) and they would greatly improve their customer base and make the iOS platform more important! Win-win-win

 

[trip1ex]

Wish this was the lineup right now

iPhone 5s - 649$
iPhone 5c - iPhone 5 internals, iPod touch casing style with colours - 499$
iPhone 4c - iPhone 4s internals, bump to support LTE, plastic casing with colours - 349$

Every price point, all great phones.

If we are talking about wishes then I wish the iPhone 5s was $50.

 

[weaverra]

wonder if they will feel pressured to do a price reduction like they did in 2007 or the 5c might be very shortlived.

$100 isnt the biggest amount in the world. its the illusion that they are giving you a choice

The driving market which is the subsidized phone market a $100 is huge. Most of the people buying the phones on contract probably can't even really afford it to begin with. They are stretching it to just pay $99 living paycheck to paycheck. Even if you are buying one outright $100 is $100 no matter how you slice it. Apple has the high end mark and the low end market in mind. Apple will make their record sales as usual.

 

[slu]

iPhone 5C is a much better phone than the S3, I would think anyone would be willing to pay more for it objectively speaking, unless you like the bigger screen size.

You should know better than anyone that the stock price always goes down on launch day. If I remember correctly it went down more last year when the 5 was released, and that was the best selling phone in Apple's history. It went down even more the year before with the 4S release, though that was more likely due to another minor event in Apple's history that coincided with that release.

All I am saying is that people seem to feel that Apple has let them down personally by not releasing a low cost phone today. Yes leave the platform if you want, but shaking your fist and screaming out, "You dirty Apple, you!! You'll get yours! You'll never get my business again!" smacks of a bitterness born of a personal slight, that's all.

Fair point on stock price. I should have considered that. As for S3 vs. 5C, is it objectively better? I am not sure. I have obviously never used a 5C, but the S3s that I have been able to play with have been quite nice. I used the S3 as a comparison basically as a this is how much last year's tech costs now. Is that fair, not sure. But I am not sure it is fair to compare the 5C to the S4 either.

 

[kissmeflorida]

Priced too high!

How is the 5C low cost at $549 off contract?

Apple is doomed. They should of put the 4S in a plastic shell and priced it at $299 - $349 off contract.

How is this going to grow market share in emerging markets? Dumb move by Apple to price the 5C this high, make a low cost phone that grows the platform is what needed to be done.

They should of just upgraded the Ipod Touch line with cellular capability.

$549 for a 4" screen with last years specs in a plastic shell in which Apple is saving an additional $18 and on top of that they are trying to sell you a plastic case for $29 additional lol...

I honestly was ready to shell out $349 for the new 5C, I will pass now, will look at Nokia next and as a last resort Samsung.

Apple could of had a big hit this Christmas with a lower priced phone, sell more units with lesser profits per unit and i bet u they would of been further ahead. Itunes spending and apps etc..

Also, sick of waiting for a larger screen, such a large company and it takes them like 10 years to make different screen sizes.

Like my Iphone 4s, just sad Apple can"t wow anymore. New colors stuck on the same design, yeah!

 

[sambredeson]

The prices in Europe are getting ridiculous.

iPhone 5C
US: $549
Europe: $800

iPhone 5S
US: $699
Europe: $930

No wonder market share is going down the drain in Europe.

Don't those European prices include some pretty steep taxes? If so, people in Europe should be used to their everything costing more than in the US.

 

[Syk]

The driving market which is the subsidized phone market a $100 is huge. Most of the people buying the phones on contract probably can't even really afford it to begin with. They are stretching it to just pay $99 living paycheck to paycheck. Even if you are buying one outright $100 is $100 no matter how you slice it. Apple has the high end mark and the low end market in mind. Apple will make their record sales as usual.

If they're living paycheck to paycheck then they probably don't need a $100 iphone period or they should be getting the free iphone.

They don't care about $100. It's all about what's new and keeping up with the Jones. They won't pay all of some bill to get them the iPhone they want.