Design the next mid/low cost iPhone

[Adelphos33]

As a 5c owner, several months after the 5s/5c launch, i've come to the conlclusion the 5c didn't do what Apple intended it to do... I see very few of them in the streets in NYC - most people have or 4/s or 5/5s. I like the color and look of my phone, but it didn't seem to either expand Apple's addressable market or take any real share of 5s sales at a higher margin for Apple.

So let's assume Apple scraps the 5c next year (which appears likely). Can we design a phone that is free on contract or about $400 off contract that
1) Attracts new users to iPhone
2) Maintains a mimimal profit margin loss compared to the iPhone 6?

The iPhone 5c was an attempt to do this, but ended it up in a murky middle where it was not cheap enough to be seen as a value but also seen as not good enough to merit its own price (I disagree with both views, the market playe dout the way it did).

I don't believe Apple can really design a phone in this manner effectively, but would love to hear your thoughts.

 

[Spectrum Abuser]

Once the iPhone 4S is bumped off of the lineup the 5C will really start to shine. It should of started as the "free" on contract device, but has still done well despite the upfront cost for a budget phone. I've seen several in the general public since the launch last year.

 

[Tthomas612]

As a 5c owner, several months after the 5s/5c launch, i've come to the conlclusion the 5c didn't do what Apple intended it to do... I see very few of them in the streets in NYC - most people have or 4/s or 5/5s. I like the color and look of my phone, but it didn't seem to either expand Apple's addressable market or take any real share of 5s sales at a higher margin for Apple.

So let's assume Apple scraps the 5c next year (which appears likely). Can we design a phone that is free on contract or about $400 off contract that
1) Attracts new users to iPhone
2) Maintains a mimimal profit margin loss compared to the iPhone 6?

The iPhone 5c was an attempt to do this, but ended it up in a murky middle where it was not cheap enough to be seen as a value but also seen as not good enough to merit its own price (I disagree with both views, the market playe dout the way it did).

I don't believe Apple can really design a phone in this manner effectively, but would love to hear your thoughts.

I've started seeing more and more in my area. I say Apple doesn't update the 5c, but makes it free on contract come September. When that happens there will be tons

 

[cambookpro]

Not sure if it's a budget-conscious UK thing, but I see many more 5cs than 5ses, even in a (fairly) affluent area. I don't think it flopped as badly as people think.

In response to the OP, I honestly don't think Apple do 'cheap' very well. Keep the 5c, as it is a great phone, and make it $0 on contract. Will sell well IMO.