Reasons for 5C pricing

Discussion in 'iPhone' started by NickPhamUK, Sep 11, 2013.

?

About the 5C being highly priced

  1. Apple knows what they're doing.

    7 vote(s)
    87.5%
  2. Apple has gone a wrong move.

    1 vote(s)
    12.5%
  1. NickPhamUK macrumors 6502

    NickPhamUK

    Joined:
    May 6, 2013
    #1
    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.
     
  2. jedolley macrumors 68000

    Joined:
    Sep 18, 2009
    #2
    A lot of people are looking at the 5c the wrong way...

    The 5c is just a cheaper (to make) replacement for the 5. Recently, when a new iPhone comes out, Apple just drops the price of the previous model. For example, when the 5 came out, the 4S because $99, and the 4 was Free. If they kept with that same pattern, then the 5 would have been $99 and the 4S free, but since the 5 is very similar to the 5s, the cost to make is probably similar. It made more business sense, for Apple to come up with a more cost effective design and put the iPhone 5 guts in it and then sell it as a "cheaper" alternative, but in reality it's a cheaper to make/replace iPhone 5.
     
  3. kerrikins macrumors 65816

    Joined:
    Sep 22, 2012
    #3
    I think a lot of people are missing the fact that this might not actually be aimed at people who are buying off contract. With the colours and the plastic and the lower price point, I'm more inclined to believe that it's aimed at teenagers and their parents who like Apple's good name + iMessage + a phone at a lower starting cost. Think about how popular Blackberries were a couple of years ago.

    Also, of course Apple is thinking about their profit margins with a plastic phone, and also overall production and ease to make.
     

Share This Page