iPhone 5c sales support the fact that people are willing to pay extra for the best value (features, benefits, performance, etc.). I think they've learned that a race to the bottom is the wrong path for them.
I disagree-Apple's experience with the iPhone 5C indicates that people won't buy an inferior product when it is seen as a bad value. If the iPhone 5C replaced, say, the iPhone 4S, then I think it would've sold better, as people familiar with Apple's prices would've wondered why Apple cheapened the product further than normal.
Value buyers are still going to the 4S, which is obsolete in the Apple arsenal, and interested buyers are going for the 5S. The 5C has no place.
I know of only one person who has it, but several with 5, 5S, 4S and 4. Many of those phones (minus 5 and 4) have been purchased since the introduction of the 5C.
No matter how you slice it, Apple should've just knocked down the price of the 5, or the 5C more. It isn't like the 5C costs outrageously much more than the 4S, is it? (I'd imagine that the 4S might even be pricier to make because the materials-I don't see significant savings on A5 v. A6, but I do v. one factory for shell v. two panes of glass, but I'm not sure-I think Apple could probably save money by simply ditching A5 production by this point completely in favor of A6, which would probably lessen A6 prices due to scaling)