my wife loves the iPhone 5C, she don't want the 5S. I think a lot of people are like her.
I'm not even talking about what people like or not. I'm talking about price. If the 5C was supposed to be an entry level iPhone, might as well treat it as such. $149 should have been the top price for the unit (under contract that is); not $199.
Those $50 can do wonders on people on that price edge. Plus, it would highlight the difference between the higher priced (and albeit more feature rich) 5S.