I've been reading a lot of threads since the announcement of 5C and 5S and the majority of people are confused with Apple's decision to set the price for 5C that high. I myself expected $399-459 off-contract and $0 with contract. That would appeal much more to those on low budget. However, I think a large firm like Apple must have some reasons for their actions. My first theory is that, it's to help the sale of 5S. People (especially non-Apple users) have been excited about a rumour over a 'budget' model and they would definitely buy the 5C once it comes out. But it turns out that, for only $100 more, you'll get a much better phone, with a premium build and feel, better chip and camera and a fingerprint scanner. So they'll go like 'meh, I'll just spend the extra $100 and buy the 5S'. My second theory is that, the 5C is there to target at those who like iPhone but in a plastic casing (for whatever reason, like personal preference, afraid of scuffing the phone etc.). Many people are not tech-savvy and they just want to buy a phone that works. For them, A7 or A6, fingerprint scanner or not, 1GB RAM or 2GB RAM... are all meaningless. The only deciding factor is the external appearance: plastic vs aluminium, and as I said before some people prefer plastic. So whilst I and many other Apple enthusiasts will never ever buy a 5C, it doesn't mean that there won't be any tech-uninformed people who do. My last theory is that, Tim Cook doesn't actually want to release such a subpar iPhone model (I believe if Steve Jobs were still alive, he wouldn't allow such projects because Apple was about making premium products). However, with Android taking up more and more market share, shareholders pressurise Tim Cook to release a budget phone. So Apple has to reluctantly follow, however to retain the 'premium image' of Apple, the 5C is still highly price. Just some of my thoughts, I don't think Apple is full of unreasonable people. If anything, they know better than we do.