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350 maybe but not 450. You get Nexus 5 at much higher spec. For similar price. 350 should be the price of they really want sell as cheaper prepaid phone
You also get a much worse user experience, plus all the tracking that comes with a Google service/device.

If Apple's prices for storage upgrades weren't outrageous that wouldn't be a problem. Take down the price to what retail SD cards cost and they'd sell lots of upgraded phones.
Apple's price for storage upgrades aren't outrageous. Base price of closely-related hardware is: iPod Touch vs. base iPhone.

I hope they will get rid of iPhone 4S!!! It's so embarrassing to keep selling that 2-3 years old phone at a mid-range price.
Especially as they cut the base version from 16GB to 8GB!

I suppose a low storage option could be justified if you could actually chose iCloud as storage, not keeping any photos locally, just make them accessible through wifi and optionally/emeregency by cellular. That would make sense, so that the memory is only a "buffer" until you get home and the phone iClouds everything..
What would make sense in having a smartphone (still) paid big bucks you can't actually use as such?
 
A new 8 GB model would allow Apple to bring the entry-level price for the iPhone 5c even lower, and while the capacity may not be enough for some users, many budget consumers may find it acceptable and Apple does currently offer an 8 GB iPhone 4s as its cheapest option in most countries.

Introducing an 8GB iPhone 5c would not, by itself, allow Apple to offer the phone at a lower price. In fact, as an isolated move, it's pure stupidity because making the product lineup more complicated, introducing more SKUs for inventory, etc. would cost more than the $5 they might save by using 8GB of flash instead of 16GB.

However, if the 8GB 5c replaces the 4S the math quickly gets complicated.

- What does it cost Apple to make the 4S versus an 8GB 5c?
- What does Apple accounting say it costs to make the 4S versus the 5c? This can be very different than the actual cost because of amortization, depreciation, the length of supply contracts, etc.
- Would an 8GB 5c be more or less appealing than an 8GB 4S?
- Would it have a positive or negative impact on sales of the more expensive models?
- Would the answers to any of the above be different next month?

I'm not sure Apple even knows the answers, but they surely have much better estimates than any of us do.
 
Introducing an 8GB iPhone 5c would not, by itself, allow Apple to offer the phone at a lower price. In fact, as an isolated move, it's pure stupidity because making the product lineup more complicated, introducing more SKUs for inventory, etc. would cost more than the $5 they might save by using 8GB of flash instead of 16GB.

However, if the 8GB 5c replaces the 4S the math quickly gets complicated.

- What does it cost Apple to make the 4S versus an 8GB 5c?
- What does Apple accounting say it costs to make the 4S versus the 5c? This can be very different than the actual cost because of amortization, depreciation, the length of supply contracts, etc.
- Would an 8GB 5c be more or less appealing than an 8GB 4S?
- Would it have a positive or negative impact on sales of the more expensive models?
- Would the answers to any of the above be different next month?

I'm not sure Apple even knows the answers, but they surely have much better estimates than any of us do.

I think the only one complicating things is you. To answer your questions:

It certainly costs Apple less to produce the 5c. Plastic is cheaper than metal and glass, meanwhile the costs of the A6 chip would have dropped by now and the A5 stopped dropping in cost a long time ago.

I think you're trying too hard on the accounting cost one.... skipping it. Obviously questions Apple could answer.

A 5c would naturally be more appealing than a 4s. Newer, better performing, larger screen, etc. Was this a serious question?

The impact on Apple's high end models is negligible because no one in that market would consider an 8 GB phone.

No, the answers wouldn't change next month. However, they will continue to swing more and more in the 5c's favour. Following the discontinuation of the iPad 2, the only product that shares the same processor generation with the 4s is the Apple TV, which is due for an upgrade.
 
I guess it may save a little on consolidating everything on the Lightning connector format as opposed to the old 30-pin connector on the 4S - would that leave any Apple device still in production that uses that connector?

It should improve the entry level experience for anyone moving over to Apple from a feature phone or Android with the faster processor, 4G compatibility and perhaps more modern look - though I do like the old 4/4S design.
 
Cuytus18894240 said:
You also get a much worse user experience, plus all the tracking that comes with a Google service/device.

Apple's price for storage upgrades aren't outrageous. Base price of closely-related hardware is: iPod Touch vs. base iPhone.

As nexus 4 user I must say I am kindly disagree with you. I am very happy with my Nexus 4 and it feel snappier than my iPhone 4S. One thing I tell you that there is no privacy on Internet world. Owning an Android device is not automatically means you get tracked by Google.

And yes, Apple's pricing on flash storage does make zero sense. You get 70 dollar less for 16GB iPod touch where you loss 16GB storage from 32GB model, the iPod Touch loop and rare camera. But Apple charging you 100 dollars for 16GB, 32GB and 64GB jump
 
Apple isn't in the business of selling money-losers.....

They'd lose what, roughly $50-75 per phone if they sold at $100 off-contract? That's nuts....not even Amazon would touch those margins.

I always said if they sold the 5C at $350 off-contract, it would've been perfect. As it stands having bought mine for $350 (with the early iPhone upgrade), I love it. It really is a nice device - very well made and comfortable.

An 8GB at $250 off-contract would be pretty great.

Yes it would. I think the phone would sell like crazy at $250 -350 off contract, especially since T-Mobile and At&T have come out with their new price plans. But at those prices it may hurt the flagship iPhone sales.
 
This is nothing new. For years now the 8 GB devices have been the ones to his this price point of $0 on contract.

The cost of manufacturing an iPhone also hasn't changed, even with new models over the years. Apple's decided profit margin has not changed either.

While I do agree with you, to some extent, that it is time for 8 GB to be replaced by 16 GB at their relevant price points, the problem is how the multiples effect the rest of the lineup......as you and I would expect, Apple has established it's $100 increments for doubling storage. This may be easy to cope with at 8 & 16 GB, but get up to 32, 64 and 128.....those levels are not ready to see the same $100 price reduction.

Therefor, the bottom has to suffer until the top can come down too.

Actually this is something new. 5c is the mid tier iPhone right now and Apple still sell the 4S as the cheapest option, $0 on contract.

In the past years, ONLY low tier iPhone dumbed down into 8GB storage. But now, 5C is only 6 months old and it's already downgraded.
Just shows how Apple regret of trying to sell it.

My prediction? The polycarbonate iPhone will not dead but it will always be the lowest, cheapest option with only 8GB of storage from this year on.
 
Yes it would. I think the phone would sell like crazy at $250 -350 off contract, especially since T-Mobile and At&T have come out with their new price plans. But at those prices it may hurt the flagship iPhone sales.
I don't think such a move likely, but if they did it would presage a large drop in flagship prices too.
 
I guess it may save a little on consolidating everything on the Lightning connector format as opposed to the old 30-pin connector on the 4S - would that leave any Apple device still in production that uses that connector?
iPod classic, and iPad 2 (until it is dropped), plus the 4 and 4s in emerging markets (assuming they aren't dropped).
 
They're most likely targeting a certain place. Maybe its something to do with their new CarPlay, or maybe a new feature they're releasing. Who knows, they could be releasing it with iCloud storage to save stuff in the cloud. I don't think Apple is stupid enough to release an 8GB device without something with it.
 
My prediction? The polycarbonate iPhone will not dead but it will always be the lowest, cheapest option with only 8GB of storage from this year on.


Is 8GB going to be enough though? After system files, that leaves only a bit over 5GB for apps and files. I'm a fairly light user but looking at my Usage in the Settings app, 8GB would not be comfortable.

16GB should be the minimum.
 
Is 8GB going to be enough though? After system files, that leaves only a bit over 5GB for apps and files. I'm a fairly light user but looking at my Usage in the Settings app, 8GB would not be comfortable.

16GB should be the minimum.

It won't be enough but that's the point. It lures you to get the higher option unless you can really live with 8GB.

Having a 8GB onboard, non-expandable storage for a smartphone is no less than buying a shiny dumb-phone plus the monthly, exorbitant carrier plan.
 
I might be in the minority, and while I can't imagine rocking only 8 GB myself (I have a 16 GB and it's painful...), there are tons of people who use iPhones for email, calendar, camera, web browsing, social media, note jotting, reminders, alarm, for weather info, for GPS, mobile banking, texting, and maybe light gaming. Probably more. None of that stuff requires much space, and I have several in my family alone who don't put music / large games / videos / etc. on it. I think there's a market for an 8 GB phone, for better or worse...
 
Yeah, that's based on US pricing models (the iPhone is awfully cheap in the US).

In the rest of the world (for example, Europe), the pricing is more like this:

€700: 16GB 5S, 32GB 5C
€600: 16GB 5C
€500: 8GB 5C
€400: 8GB 4S

So a €500 iPhone makes sense for Europe. It bridges the gap nicely.
I think you are wrong about thinking iPhones are "awfully cheap" in U.S. Compared to the Europe,as far as I know those U.S. Prices are what you pay in addition to paying monthly contract fees.also add Tax to that.
Whereas the European prices are the toral price you pay for the phone,without need to pay any monthly contract fee.
In the UK for example Apple sells iPhone 5s 16GB for £530 & iPhone 5c 16GB. For £470.thats the total price you pay for the phone,no monthly contract is attached to it.also tax is already included in that price.

The U.S equivalent of that pricing is when you buy the phone on contract,currently you can get the 16GB iPhone 5s for £30 plus £35 monthly payments on a 2 Years contract.(you get 500 minutes,unlimited Data and 5000 SMS included).
4s is free on all contracts for just £25 a month on 2 Years contract (same package as above).
 
Apple isn't in the business of selling money-losers.....

They'd lose what, roughly $50-75 per phone if they sold at $100 off-contract? That's nuts....not even Amazon would touch those margins.

I always said if they sold the 5C at $350 off-contract, it would've been perfect. As it stands having bought mine for $350 (with the early iPhone upgrade), I love it. It really is a nice device - very well made and comfortable.

An 8GB at $250 off-contract would be pretty great.


Dem margins would be too low for Apple.

The plastic case on the 5C doesn't actually save that much money and halving the storage to 8GB will only save them like $2.
The BOM on the 5C wasn't that much lower than the 5. Its still an old flagship phone inside.

491609
 
I think you are wrong about thinking iPhones are "awfully cheap" in U.S. Compared to the Europe,as far as I know those U.S. Prices are what you pay in addition to paying monthly contract fees.also add Tax to that.
Whereas the European prices are the toral price you pay for the phone,without need to pay any monthly contract fee.
In the UK for example Apple sells iPhone 5s 16GB for £530 & iPhone 5c 16GB. For £470.thats the total price you pay for the phone,no monthly contract is attached to it.also tax is already included in that price.

The U.S equivalent of that pricing is when you buy the phone on contract,currently you can get the 16GB iPhone 5s for £30 plus £35 monthly payments on a 2 Years contract.(you get 500 minutes,unlimited Data and 5000 SMS included).
4s is free on all contracts for just £25 a month on 2 Years contract (same package as above).
I know that, but an unlocked iPhone is $650 in the US, or about $700 with VAT included. That's €500, almost €200 cheaper than in Europe.
 
This is dumb, and hopefully a stop-gap measure until they do 16/32/64/128 across the board. The difference in price between an 8GB chip and a 16GB chip is so small, it would be worth it for Apple to have happier customers quite honestly. These people don't need to be frustrated with constantly managing their space. It's 2014, and files are huge! A 5C buyer today may well be a 7S buyer a few years down the road. Don't make them angry. Data managing sucks. I think the same thing is true with the iPad at 16GB—especially when you download the iWork and iLife apps. My grandparents don't do much on their iPad and it's always running out of space. I had a computer running Windows 98 with a 20GB drive for crying out loud! Our Packard Bell on Windows 95 had an 8GB drive. How can we have a post-PC era when people who have a low-end five year old laptop with a 200GB drive are trying to switch to a 16GB tablet that cost more than their laptop did five years ago? And to get about 2/3 that storage they must spend an extra $300 for the 128GB model? Oh and another thing, their 5MP camera died and their new one is 16MP. Good luck storing those somewhere. Apple needs to design a better solution. Pretty much the only thing that ticks me off about Apple: they're greedy with storage space on the device, they're greedy with RAM (1GB for the third generation in a row, especially on 64-bit chip isn't good), and they're greedy with iCloud storage space (both amount offered free which is supposed to be built into the device cost vs. the competition, the pricing for additional amounts, and the fact that if you own multiple iOS devices you're penalized with only 5GB to back them all up to). Otherwise I like Apple. There is no reason to be greedy when it affects the customer experience quite negatively and the cost to you is fairly negligible.
 
I know that, but an unlocked iPhone is $650 in the US, or about $700 with VAT included. That's €500, almost €200 cheaper than in Europe.
yes,but you should also take into account that in US people get payed in Dollars not Euros / Pounds..so everything "appears" to be cheaper when you convert the price to the higher value Euro / Pounds.
 
Yes it would. I think the phone would sell like crazy at $250 -350 off contract, especially since T-Mobile and At&T have come out with their new price plans. But at those prices it may hurt the flagship iPhone sales.

Take note of this moment: I agree with you :D

We are not going to see it at that price range. At least 100$ more than that. Something like 450-499$.
 
Strange. Networks in the UK are now selling this but Apple's online store doesn't list it!
 
if you are going to sink to the level of insults then back up your claims. shouldnt be too hard since it was clearly planned.

its desperate because this is the only thing apple can think of to lower the price which is why i mentioned they could as well start selling non working phones.

you are sure it would compromise? you have any real life experience to back that up? but that is some faith you have in apple and their skills in overcoming obstacles.

No one insulted you. But you really should read my post and try to comprehend it. As already said, Apple planned in advance to keep the 4S around for a limited time, rather than offering the 5c at 8 GB from the start, and it was due to some distribution channel factors that are over your head. I'm not digging 9 month old articles up for you, you can waste your own time on that.

If Apple's prices for storage upgrades weren't outrageous that wouldn't be a problem. Take down the price to what retail SD cards cost and they'd sell lots of upgraded phones.

They're not outrageous at all. The prices of SD cards are not even remotely close to being a comparison either.

Probably the only intelligent post in the thread. Not only has your assessment of your fellow forum members been accurate to a 'T', but they have also all decided to completely ignore your post and not even read the thread before posting themselves.

How and why is this treated as a surprise? It was old news 6 months ago...

Thank you.

Actually this is something new. 5c is the mid tier iPhone right now and Apple still sell the 4S as the cheapest option, $0 on contract.

In the past years, ONLY low tier iPhone dumbed down into 8GB storage. But now, 5C is only 6 months old and it's already downgraded.
Just shows how Apple regret of trying to sell it.

My prediction? The polycarbonate iPhone will not dead but it will always be the lowest, cheapest option with only 8GB of storage from this year on.

Everything you said made sense except for the bold. You are right, this IS new, where the $0 phone is not at least 2 years old. I'd say that is GOOD for consumers, wouldn't you?

Downgraded is wrong word, however. It doesn't make any sense either. If the 16 GB version dropped in price by $100, that would be downgrading it. Instead they introduced a new model at $8 for a $100 less.

Do you not remember that prior to the iPhone launch in Sept. '13 most people expected Apple to come in with the 5c being both 8 & 16 GB at $0 and $99 right out of the gate? Apple clearly decided not to do that, because they had other reason to keep the 4S around. It had to do with certain international markets and distribution channels, as well as cost of manufacturing. It was a business decision that probably affected some unknown bottom line somewhere. It makes no difference, the plan was, all along, to introduce an 8 GB 5c at $0 in early 2014. Exactly. What. They. Just. Did.
 
No one insulted you. But you really should read my post and try to comprehend it. As already said, Apple planned in advance to keep the 4S around for a limited time, rather than offering the 5c at 8 GB from the start, and it was due to some distribution channel factors that are over your head. I'm not digging 9 month old articles up for you, you can waste your own time on that.

if you cant back up the statements you make then perhaps you shouldnt make them.

perhaps a huge lack of understanding on your part caused you to misunderstand the article in question 9 months ago. it probably went right over your head.

decided to reread your replies to me ande there is no mention of 4s there. perhaps you should reread those.
 
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