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A metallic or glass phone is premium compared to the mass of the market, unless it runs Windows Phone.

A plastic phone is just another plastic phone, Android is good.

So again, in 2008/2009 (3G/3GS) the iPhone was "just another plastic phone"?

the 5c is still an iPhone which has been the gold standard to compare all smartphones too since 2007, "the mass of the market" does not see the iPhone as "just another phone"

The 5c is really an iPhone 5, and there is no way the 4S (which is now a 3 year old design, an improved 2010 iPhone 4!) is still premium if the 5/5c is not. I would not have even bother to reply/disagree with you if you did not claim the 4S was still premium. It is an excellent design that should go along side the original 1984 Mac, the 2001 Power Mac G4 Cube. Those were premium when they came out but are now old computers (part of history, yes. But they are still outdated computers)
 
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If value matters to you, then the top-of-the-line 5S would indeed be a better bang for your investment. No doubt, two years from now the 5S will hold much more than $100 premium resale value over the (2012) 5C. It's helpful to think long-term.


Those camped out
want the latest thing. I'm still using my iPhone 4 on SIM-only but if it stopped working and I chose to buy again I'd quite likely choose the 5C. I rarely buy the absolute top of the line as the value isn't there.
 
There are plenty of other ways to look at it.

More evidence that consumers are not naive enough to buy a plastic phone with fewer features, when a phone for slightly more money is much more advanced.

More evidence that the color scheme apple chose is hideous.

More evidence that folks wanted a cheaper alternative. Since there isn't one, they are going for the newer tech.

etc...

No matter how you dice it: consumers are more than willing to buy higher priced Apple products. Apple does not need to offer devices at lower price points to continue to grow.
 
And under this article's rationale, Apple decided to give us preorders for the 5C and ramp up production of it earlier to have a larger stock of it while doing neither for the 5s.

Seriously. It almost looks like they just want to piss fans off. :confused:
 
No matter how you dice it: consumers are more than willing to buy higher priced Apple products. Apple does not need to offer devices at lower price points to continue to grow.

Define "grow"

In a closed environment, you are correct. Given the choice of two, more consumers are picking the one with much better specs, and doesn't look like a pastel skittle for $100 more.

On the other hand, in a NON-closed environment, given the choice of an outrageously expensive plastic iPhone, or an any number of attractive android phone for hundreds less, many folks will opt for the android alternative. And market share keeps slip sliding away.
 
The 5c sales figures actually should be put into comparison with the iPhone 4s sales back one year ago - with a small addition due to the fact it is a "new" model and the 4s was pretty much faded out.
 
Parents (being one myself) who have any self respect, won't pay for their kids to have a $2,400 dollar contract for a mobile phone, regardless of the subsidized up-front cost.

All I can say is that you reap what you sow, and teaching your kids that spending that kind of money on them is financially responsible is only going to hurt them in the long run.

You can get a cell phone for $50 off-contract, and pay-go for 10-40 bucks a month depending on what you need, service-wise. Any kid with an iphone who isn't working full time and paying for phone/car/insurance themselves is learning the wrong things about life, and boy, are their parents going to be confused one day when their 35 year old son is living in the basement. Where did we go wrong, honey?

In some houses, people eat filet mignon for dinner each night. In some houses, it's hot dogs. It all depends on the bottom line. If you're going hungry to pay for your kid's cell phone service, or going without shoes, yeah... you are teaching them the wrong lesson. But if finances are such that it's not a big deal, I don't see what the big deal is.

I'm not against having a teen work off the cost of data each month by doing chores etc, but most parents now a days feel that their teen having a phone is a necessary safety feature, not a luxury. So what we're really talking about is the extra $30 a month for that phone to have data. Your scenario is not that much different that adding a kid on a family plan. Not sure how you came up with a $2400 contract. I figure the 2 yr plan at ($10 + $30) x 12 mo. x 2 yr at $960. Add the cost of a smart phone and it's not nearly that much.
 
No matter how you dice it: consumers are more than willing to buy higher priced Apple products. Apple does not need to offer devices at lower price points to continue to grow.

Not really, this just shows that die hard fans are willing to buy early. Which is great for publicity but what really matters is what the average consumer who doesn't care chooses at their next upgrade.
 
That's what I thought, too. But my teen granddaughter and her pre-teen sister both want the 5s. The color options did not sway them. The one feature that intrigued them was the finger print sensor.

I also think that in more affluent areas, the initial cost of the iphone was not, nor will be, the determinating factor. Most of the cost of owning a smart phone is in the service each month. Looking at the entire cost over the two year contract, the extra $100 is not a deal breaker.

I guess time will tell, but 2 teenagers is a bit of a small sample group to base any conclusions on. ;)
 
Higher priced phone is more popular? More evidence pointing to why Apple does not need to make a "cheap" phone.

You can't really turn launch weekend into a case study. Above the normal level of buyers and those drawn in by advertising, you have people who keep track of dates to buy a new device. This is not to say they're not doing well.

No matter how you dice it: consumers are more than willing to buy higher priced Apple products. Apple does not need to offer devices at lower price points to continue to grow.

The debate is generally over where they will find more buyers. Without subsidies, an iphone costs as much or in some cases more than a low budget PC. This represents price territory they covered anyway. They just moved some of the costs around according to the teardown. I suspect they reduced manufacturing cost or the need to purchase costly equipment somewhere, but I don't see where you have enough information to draw an unbiased conclusion.
 
If people think about this, it isn't all that surprising.

What type of person will be waiting in line for a new iPhone - the type who wants the latest and greatest, aka the iPhone 5S.

Down the line, however, the 5C will likely catch up in popularity as those looking for a "cheaper" upgrade could go for the colorful, durable 5C option.

Way to early to call the 5C a fail or flop as we have no yet reached the time period/consumer base for which the phone was intended.
Definitely the correct analysis of these numbers. How many people, for example, were lining up to buy the iPhone 4S last year?

The 5C is intended to target new consumers and upgraders who are looking to spend no more than $100 for their contract smartphone, and now have a new iPhone as a viable alternative to Android.
 
Higher priced phone is more popular? More evidence pointing to why Apple does not need to make a "cheap" phone.

The reason the 5C isn't priced lower is because of subsidies. The typical subsidy is $450 over 2 years. If a phone is priced at $450 or lower, the phone is free on contract. Anything less than $450 benefits only the cell carrier. The iphone 4s is free on contract, the 5c can't be priced the same as the 4s, so it's $99. When the 4s goes away, it would be nice if the 5c was free.
 
You really need to hold one in person, it's pretty amazing what they were able to do with plastic.

Actually, it is amazing what they were able to do with your perception. Was in a store held both in my hand. 5s feels like a high-end product. 5c is just middle class. Especially the cheap buttons. This is not going to sell at its current price point. 9 million includes sell-in. A lot of the 5c sales were to carriers who now have too many of them. The 5s will sell great. The 5c not so much.
 
Define "grow"

In a closed environment, you are correct. Given the choice of two, more consumers are picking the one with much better specs, and doesn't look like a pastel skittle for $100 more.

On the other hand, in a NON-closed environment, given the choice of an outrageously expensive plastic iPhone, or an any number of attractive android phone for hundreds less, many folks will opt for the android alternative. And market share keeps slip sliding away.

Grow, as in their launch sales grew from 5M in 2012 to 9M in 2013. That's revenue growth.
 
Higher priced phone is more popular? More evidence pointing to why Apple does not need to make a "cheap" phone.

Ignore the other idea, that they don't think the "cheap" phone is a good value, and thus, they're still neglecting a segment of the market.
 
The reason the 5C isn't priced lower is because of subsidies. The typical subsidy is $450 over 2 years. If a phone is priced at $450 or lower, the phone is free on contract. Anything less than $450 benefits only the cell carrier. The iphone 4s is free on contract, the 5c can't be priced the same as the 4s, so it's $99. When the 4s goes away, it would be nice if the 5c was free.

No limit at 0. They can give you a credit.
 
Once both of you move past a 101 level business class in your undergraduate studies, you will get the aha moment on why the 5C makes sense. Stay in school. :rolleyes:
You missed the point. The 5C makes good sense from a business point of view, not from a consumer point of view. Part of running a successful business is selling what your customers want, even if it defies logic. It's not your job to educate customers.
 
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