So I thought about it last night and I think I know why Apple has decided to release the iPhone 5C instead of just lowering the price of the iPhone 5 (Other than cheaper manufacturing costs)...
It now puts Apple in the position to have a brand new, redesigned iPhone every year. With increased competition i think this is important. Let me give you an example:
2013: New iPhone 5C & upped iPhone 5S
2014: Upped iPhone 5C & redesigned iPhone 6
2015: Redesigned iPhone 6C & upped iPhone 6s
Etc, etc.
It now puts Apple in the position to have a brand new, redesigned iPhone every year. With increased competition i think this is important. Let me give you an example:
2013: New iPhone 5C & upped iPhone 5S
2014: Upped iPhone 5C & redesigned iPhone 6
2015: Redesigned iPhone 6C & upped iPhone 6s
Etc, etc.