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Is the iPhone 5c a mistake?

A

aimee.elizabeth

Cancelled
Original poster
Sep 28, 2012
369
0
Hi I just wanted to ask if anyone thinks that the 5c will be a mistake for Apple?

I came across this article yesterday - http://pocketnow.com/2013/08/15/the-iphone-5c-is-a-mistake

I talked to someone who knows about marketing and business and they told me that Apple would be competing against itself, and that it would drive many people who used to buy the premium product, i.e. the iphone 5 to the lower priced phone that will still be quality because it's an Apple product.

I personally think that Apple is trying to target overseas users who don't have the luxury of subsidized prices. But do you think this will have a negative effect on the company?

Discuss
 
The more people that they can move onto iOS means more people will inevitably purchase something through iTunes or the App Store. Apple knows what they're doing.
 
TacticalDesire said:
How could we know when it hasn't even been released? I'm sure apple has their reasons.
Click to expand...

Well because it's fun predicting the future? No it hasn't come out yet but doesn't mean we can't talk about it.

----------
tardman91 said:
The more people that they can move onto iOS means more people will inevitably purchase something through iTunes or the App Store. Apple knows what they're doing.
Click to expand...

That is true, I forgot about the app/music purchase aspect of the ecosystem.
 
aimee.elizabeth said:
Hi I just wanted to ask if anyone thinks that the 5c will be a mistake for Apple?

I came across this article yesterday - http://pocketnow.com/2013/08/15/the-iphone-5c-is-a-mistake

I talked to someone who knows about marketing and business and they told me that Apple would be competing against itself, and that it would drive many people who used to buy the premium product, i.e. the iphone 5 to the lower priced phone that will still be quality because it's an Apple product.

I personally think that Apple is trying to target overseas users who don't have the luxury of subsidized prices. But do you think this will have a negative effect on the company?

Discuss
Click to expand...

Yes, Sir...will discuss...

The answer is...Yes, the 5c will be a mistake. It will cannibalize consumers who might go to the more expensive models and degrade the premium image of the line.

The answer is...No, the 5c will not be a mistake. It will appeal to a different demographic than the more expensive phones and increase overall sales...and will act as an entry device, bringing new consumers into the Apple line of products, leading to a desire to try other products and ultimately upgrade to a more expensive phone.

I hope I have this covered as I have Discussed, as ordered...:rolleyes: :D
 
Shrink said:
Yes, Sir...will discuss...

The answer is...Yes, the 5c will be a mistake. It will cannibalize consumers who might go to the more expensive models and degrade the premium image of the line.

The answer is...No, the 5c will not be a mistake. It will appeal to a different demographic than the more expensive phones and increase overall sales...and will act as an entry device, bringing new consumers into the Apple line of products, leading to a desire to try other products and ultimately upgrade to a more expensive phone.

I hope I have this covered as I have Discussed, as ordered...:rolleyes: :D
Click to expand...

Wow didn't realize starting a discussion of something that interested me warranted such sarcasm. My bad.
 
tardman91 said:
The more people that they can move onto iOS means more people will inevitably purchase something through iTunes or the App Store. Apple knows what they're doing.
Click to expand...

And the more people that get tied into the ecosystem.

There are something like 4 billion people within a 4 hour flight of Hong Kong. If Apple gets even a fraction of those people tied into their ecosystem they will have done very well indeed.
 
Your friend may know marketing and business but he/she didn't do their research. Apple's "luxury" brand, the iPhone 5, is already being cannibalized because sales of the iPhone 4 and 4S are still strong.

The issue with this is margins. The 4 and 4S used to be the premium model but are now being sold for a lower price, resulting in lower profit margins. The iPhone 5C is expected to be sold at a lower price and thus will use cheaper materials from the start (e.g. the plastic case that's been floating around rumor sites).

So even though the iPhone 5S or 6 or whatever the premium version will be called will be cannibalized by the 5C model to some extent, Apple's margins and profits should, in theory, be better than when the premium model is cannibalized by sales of past iPhones.
 
The iPhone 5 was going to be sold as the cheaper alternative anyway.

Apple is doing the exact same thing but it's also making it easier and cheaper to build, which improves margins dramatically.
 
aimee.elizabeth said:
Hi I just wanted to ask if anyone thinks that the 5c will be a mistake for Apple?
...
Click to expand...
Without knowing the pricing, the feature differences and what countries the alleged 5C will be available in, it's difficult to theorize on if it is a mistake or not.

I suspect Apple will set the pricing, features and availability such that it shouldn't be a mistake.

Technarchy said:
The iPhone 5 was going to be sold as the cheaper alternative anyway.

Apple is doing the exact same thing but it's also making it easier and cheaper to build, which improves margins dramatically.
Click to expand...
Also, if the stop selling the iPhone 5 when the next models are released it means that Apple can stop iOS upgrades sooner for the iPhone 5 than if they had continued to sell it.
 
They should make the 5c only for overseas. That's the market they are losing to Samsung. In the U.S. iPhone is doing just fine thank you.

And as requested before they should not call that iPhone at all but MacPhone.
 
People are still buying the iPhone 4 because they can get it for free. When the iPhone 4 came out it was awesome but three years later and several iOS updates well you know. Lol. Anyway hope they get rid of the 4 and 4s. I like the idea of the "budget" iPhone. That being said I hope that the specs aren't better then the 5 but better then the 4s and that this becomes the "free" phone with 2 year activation.
 
aimee.elizabeth said:
...
I talked to someone who knows about marketing and business and they told me that Apple would be competing against itself, and that it would drive many people who used to buy the premium product, i.e. the iphone 5 to the lower priced phone that will still be quality because it's an Apple product.
...
Click to expand...
You mean like right now where the iPhone 4 and iPhone 4s detract from iPhone 5 sales?

I suspect if the 5C is available in the US your options will be a 5C or a 5S and all the older phones will be discontinued. And at that point even if the 5C takes away some of the 5S sales, as long as Apple picks up new customers because of the 5C they are ahead. Look at it this way, the iPad mini did take away some sales of the full size iPad, however they sold more than enough iPad minis to more than make up the difference.

AdrianK said:
I'm glad you consulted an expert.
Click to expand...
I wonder what qualifications the so called expert has. Also, without knowing the exact lineup of iPhones available at the next update, it is difficult to guess at what will happen sales wise.
 
We have heard people lecturing Apple about a new product cannibalizing an existing product, YET, Apple made iPhone with iPod built-in. Dunno, we know better than Apple?
 
Hasn't Apple always said that they are not afraid of cannibalize themselves? I thought there was a quote somewhere, "if you don't cannibalize yourself, someone else will."

I mean look at the iPad and iPad mini. The iPod, iPod mini, iPod shuffle, etc.
 
AdrianK said:
I'm glad you consulted an expert.
Click to expand...

Where did I say that he/she was an expert?

----------
Bear said:
You mean like right now where the iPhone 4 and iPhone 4s detract from iPhone 5 sales?

I suspect if the 5C is available in the US your options will be a 5C or a 5S and all the older phones will be discontinued. And at that point even if the 5C takes away some of the 5S sales, as long as Apple picks up new customers because of the 5C they are ahead. Look at it this way, the iPad mini did take away some sales of the full size iPad, however they sold more than enough iPad minis to more than make up the difference.

I wonder what qualifications the so called expert has. Also, without knowing the exact lineup of iPhones available at the next update, it is difficult to guess at what will happen sales wise.
Click to expand...

Again, I never said this person was an expert, it just came up in a casual conversation and I thought it was interesting so I wanted to seek opinions elsewhere.

I understand that the phone hasn't come out yet and no one can predict what will happen, but I thought perhaps other people are more knowledgable on such things so I came to MR for opinions. I'm in no way attacking or criticizing Apple for their business decisions, just merely trying to understand it.

But thank you everyone for your inputs, I see that there are many more aspects to this business decision than appears to be.
 
Choice is good. The 5c will be a success depending on the price. I'm guessing $400+ off contract.
 
I think more 5C sales will come from purchasers that wouldn't have bought a iPhone because it was outside their price range than would have got an iPhone 5S (assuming that is what the 2 new models will be called). So it is highly likely to be a net gain.

A lot of these customers will be new to Apple, so there is a lot of potential for them to buy other Apple equipment in the future.
 
aimee.elizabeth said:
Hi I just wanted to ask if anyone thinks that the 5c will be a mistake for Apple?

I came across this article yesterday - http://pocketnow.com/2013/08/15/the-iphone-5c-is-a-mistake

I talked to someone who knows about marketing and business and they told me that Apple would be competing against itself, and that it would drive many people who used to buy the premium product, i.e. the iphone 5 to the lower priced phone that will still be quality because it's an Apple product.

I personally think that Apple is trying to target overseas users who don't have the luxury of subsidized prices. But do you think this will have a negative effect on the company?

Discuss
Click to expand...

You forget the world does not just include your one country.
 
I don't think it will be a mistake. I think it will still be a high quality phone.

---

Hankster said:
You forget the world does not just include your one country.
Click to expand...

She mentions overseas users in the post you quoted, so CLEARLY she can't be forgetting about other countries.

Was it too difficult to read a small(ish) post before replying? :rolleyes:
 
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