I figured out the 5c

[swish2351]

Apple has the MBA starting at $1000 for people who just want basic usage, then they have the rMBP (cMBP is being discontinued) for $1500

The MBA sells more than the rMBP because it's just a basic thing that everyday people need. The rMBP is sold to people who have a specific need, or just have the money to spend on it.

Apple wants the 5c to be like the MBA, and the 5s to be like the rMBP.

The difference between $550 and $650 doesn't seem like too much, but it is. $100 is a big price difference for a phone. (Only America does subsidized prices) And people will buy this with the intention of keeping it for a long time, so they will be happy with their purchase.

Yes, $550 is still too much, but at least we know what was going through Apple's mind when they did this

 

[Iphone5preorder]

I don't know what just went through my mind reading this but it wasn't much I can tell you that.

 

[hbman122]

"only America does subsidised prices" .... what?

 

[xVeinx]

The 5C was made to consolidate the phones from needing a different phone for each carrier. It greatly simplifies the supply chain; even with the added colors, etc., having one phone work for all markets makes a huge difference.

 

[saving107]

Apple has had this Free, $99 and $199 starting price points for several years now, why is everyone acting like this is something new.

 

[xVeinx]

Apple has had this Free, $99 and $199 starting price points for several years now, why is everyone acting like this is something new.

It's "new" in that every analyst (and Icahn) wants Apple to make the cheap iphone that everyone buys and gets them up to 50% market share. Forget the margins, forget the fact that they don't make much from itunes, ads, or anything else. Marketshare is king. Amazon does it by flooding the markets with cheap(er) goods, and the stock market rewards them for it. It goes against Apple's business model, and it doesn't make sense either in the long or short term (except for those who want to get the stock up now to dump it shortly after at a large profit).

 

[swish2351]

I don't know what just went through my mind reading this but it wasn't much I can tell you that.

Good one? ...

 

[sergey19]

"only America does subsidised prices" .... what?

It's true. In most countries carriers don't offer subsidies for phones and so people are forced to buy them unlocked, at full price (so at least $650 for the 5S)

 

[saving107]

It's "new" in that every analyst (and Icahn) wants Apple to make the cheap iphone that everyone buys and gets them up to 50% market share. Forget the margins, forget the fact that they don't make much from itunes, ads, or anything else. Marketshare is king. Amazon does it by flooding the markets with cheap(er) goods, and the stock market rewards them for it. It goes against Apple's business model, and it doesn't make sense either in the long or short term (except for those who want to get the stock up now to dump it shortly after at a large profit).

Now that I think of it, I do recall my mom telling me that she upgraded to the iPhone 5 a few months ago because she was worried that Apple's marketshare was going down and even though her iPhone 4 still worked great, she wanted to help boost their numbers.

And if analyst were ever right then according to Piper Jaffray we should have had an Apple branded TV years ago.

 

[617aircav]

It's true. In most countries carriers don't offer subsidies for phones and so people are forced to buy them unlocked, at full price (so at least $650 for the 5S)

subsidies are offered all over europe, people just dont like contracts over there.

 

[osofast240sx]

Apple has had this Free, $99 and $199 starting price points for several years now, why is everyone acting like this is something new.

Because for some reason everyone expected apple to make a cheap phone.

 

[GoCubsGo]

I wasn't aware there was a mystery behind the 5C. /shrug

 

[Shrink]

I wasn't aware there was a mystery behind the 5C. /shrug

OP solved The Mystery That Wasn't There.

Booth killed Lincoln...another mystery solved!

 

[aneftp]

60% of Americans are on a family plan that offer significant savings.

In Europe and other parts of the world, there really isn't a "family type of plan" that the USA offers.

Most Americans pay around $50 per line (including data) on family plans 4 or more lines.

The USA post paid carriers are their own worst enemies. Because they got caught with their pants down with the smartphone explosing. Having to subsidize lines 2-5 that cost significantly less than line 1 means less profits.

That's why you see carriers indirectly "raising prices" by forcing upgrades once ever 24 months instead of being more generous by allowing some to upgrade once every 12 months with family lines and 18-21 months with other lines.

 

[saving107]

Because for some reason everyone expected apple to make a cheap phone.

Like the iPad mini starting at $329 and the 5th Generation iPod touch starting at $299, since when has Apple done something cheap to please the masses?

Back in February Tim Cook said Apple wouldn't be doing a cheap iPhone, so anyone disappointed now because of all these sourceless rumors and analyst predictions have no one to blame.

Apple CEO Tim Cook poured cold water on the cheap iPhone rumors today at Goldman Sachs’ Technology and Internet conference in San Francisco. Sort of.

Asked about making a cheaper iPhone to appeal to consumers in the fast-growing developing world, Cook said it was a “popular question” but redirected his answer to Apple’s focus.
“The only thing we’ll never do is make a crappy product,” he said. “That’s the only religion we have: We must do something great.”

http://venturebeat.com/2013/02/12/no-cheap-iphone-apples-religion-is-we-must-do-something-great/

Would people have been all up-in-arms if Apple had just continued to do the same thing as before and just bump down the iPhone 5 to $99, no one complained last year that the iPhone 4S was overpriced at $99 ($449 off contract)

 

[osofast240sx]

Like the iPad mini starting at $329 and the 5th Generation iPod touch starting at $299, since when has Apple done something cheap to please the masses?

Back in February Tim Cook said Apple wouldn't be doing a cheap iPhone, so anyone disappointed now because of all these sourceless rumors and analyst predictions have no one to blame.


http://venturebeat.com/2013/02/12/no-cheap-iphone-apples-religion-is-we-must-do-something-great/

Would people have been all up-in-arms if Apple had just continued to do the same thing as before and just bump down the iPhone 5 to $99, no one complained last year that the iPhone 4S was overpriced at $99 ($449 off contract)

It just boggles the mind that people think Apple is going to do something different than what they're already doing. Now the only one thing people have left to complain about is a bigger iPhone.