That's where I'm at. Apple gave me the option for a solid upgrade at a lower price point.
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The Real Reason the 5C Exists
- Thread starter blairh
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That's where I'm at. Apple gave me the option for a solid upgrade at a lower price point.
If you learn the economics of profit maximization in detail, you would have learnt that companies have two ways to maximize profits, one in which is increase revenue and the other which is reducing the cost of production. These are the two main types to increase revenue. Of course, in reality, firms would do both.
Why would Apple create a new 5C solely for the reason just to get the iPhone 5 out of the line up? It might be an accompanying reason, but not the utmost crucial one. IMO, the 5C exists to target the budget conscious consumer, period. Apple has been trying for years to open up the budget market without compromising its image of 'luxury, high end electronics'. IMO Apple is trying to sell the iPhone 5C in huge volumes to markets around the world, especially developing, new markets. You can either sell in huge volumes to rake in a huge profit with high demand due to the low price, or to sell at smaller volumes at a higher price at the expense of lower demand. The former is a much rational way. It satisfies both consumers as well as keep profit margins high.
Why would Apple create a new 5C solely for the reason just to get the iPhone 5 out of the line up? It might be an accompanying reason, but not the utmost crucial one. IMO, the 5C exists to target the budget conscious consumer, period. Apple has been trying for years to open up the budget market without compromising its image of 'luxury, high end electronics'. IMO Apple is trying to sell the iPhone 5C in huge volumes to markets around the world, especially developing, new markets. You can either sell in huge volumes to rake in a huge profit with high demand due to the low price, or to sell at smaller volumes at a higher price at the expense of lower demand. The former is a much rational way. It satisfies both consumers as well as keep profit margins high.
I think the 5c was created to bifurcate the iPhone model line and test the market to see how different iPhone models would do and gauge the demographics and circumstances of the sales with features and price points with a different type of iPhone, in this case, one that is an iPhone but doesn't have the most expensive build and case quality, to see if they can either capture buyers not interested in top quality components that wouldn't have otherwise bought an iPhone, and to see which of current customers would be fine with the different quality version.
Probably lots of other reasons contained in internal memos, but it'll be interesting to watch sale statistics of the two phones.
It's the first logical step to creating many different types of iPhones, such as different screen sizes and so on, like they did with the iPod line.
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I was with you until you said "period" because I'd never think they had only one reason, even if targeting those types of consumers is an important goal or reason, it would never be alone as a goal and reason...
Probably lots of other reasons contained in internal memos, but it'll be interesting to watch sale statistics of the two phones.
It's the first logical step to creating many different types of iPhones, such as different screen sizes and so on, like they did with the iPod line.
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I was with you until you said "period" because I'd never think they had only one reason, even if targeting those types of consumers is an important goal or reason, it would never be alone as a goal and reason...
There's not. I continually see 5 owners whine -- just as the 4 owners did about the 4S -- about there not being a compelling reason to upgrade.
Duh.
Most everybody in the US is on a 2-year contract. Thus it would be a waste of money to make a completely redesigned phone every year. Macs don't change much in upgrades for about five years. This isn't a coinkydink.
Wouldn't "sell at smaller volumes at a higher price at the expense of lower demand" defeat the whole purpose of moving into emerging developing markets?
I probably slept thru the whole profit maximization class but nothing about the 5c's price point screams developing market to me.
Completely correct. Apple can't market an old phone, because that's exactly what it is. Old. Now they can market a 'new' phone...tv ads, print ads, everything, all advertising the 5C. Therefore more will be sold.
The other thing that must be noted is that the 5C now covers a lot more 4G bands, and so the networks (especially in the UK, where only one network could offer it on the 5) can now market 2 phones, instead of 1.
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Never needed to, or just realised they could re-market a product as new and fool the general public? Those guys are pretty intelligent bastar....... salesmen.
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I think you are being way too kind to Apple here. They never felt the need to slap a plastic case onto a previous-gen iPhone and pretend it's something new. Now that they do you think they are geniuses.
I see a lot of comments that teens will eat up this 5C model. Most teens use cases so I don't think that's really an issue. There are only 3 valid reasons to create the 5C. They needed to get the slate model off the market. They wanted to create a phone almost equal to the 5 that costs less to produce. They want to shift more iPhone's and making a visual change between the flagship and the middle offering helps them do so. I am not impressed with this move. If you are, we'll simply have to disagree.
What they should have done was found a way to create a cheaper iPhone. Hell even an 8GB 5C that is $450 off-contract/free on-contract would have been a big deal. Instead we have the 4S sticking around for another 12 months.
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Just comes off as lame to me.
If the 5 would have stayed in the line up it would have been the same price as the 5C like Apple has always done. They just managed to make it cheaper and sell it at the same cost. Seems like a way to maximize profit to me.
The 4S which is still currently in the line up is the cheap iPhone. This goes to show you that the 5C wasn't made for emerging markets or to grab at the Android market. And the fact it's still too expensive for both of those scenarios should be a given.
Do people actually think the 5C is something that's supposed to benefit consumers more?
The 4S which is still currently in the line up is the cheap iPhone. This goes to show you that the 5C wasn't made for emerging markets or to grab at the Android market. And the fact it's still too expensive for both of those scenarios should be a given.
Do people actually think the 5C is something that's supposed to benefit consumers more?
I wouldn't be surprised if the OP is right.
I got a black iPhone 5 on day one last year. The thing was useless, it scuffed so easily.
Apple replaced it for a white one and it's much much more rugged.
People may think the OP is paranoid, but Apple do royally mess up sometimes, and that black treatment last year was poor.
I got a black iPhone 5 on day one last year. The thing was useless, it scuffed so easily.
Apple replaced it for a white one and it's much much more rugged.
People may think the OP is paranoid, but Apple do royally mess up sometimes, and that black treatment last year was poor.
Good point that with and iPhone 5C(hina) will be do well with a chunk of people. It seems a little odd to a lot of us enthusiasts but I think it'll be fine.
The thing is they have created a cheaper iPhone. I don't disagree with you on the above, and I'm sure many others don't. I really think that they've made a mistake with the pricing. I'm amazed they are keeping the 4S, with the smaller form factor, and with the old connector. Maybe they just can't afford to give away the 5C with a contract, and they're actually waiting for next year, so they can sell the 5C, 5S and 6...all looking different. Who knows what goes on in those walls!
This is a ridiculous comparison. The 3G brought faster data, the App Store, and a subsidized price. It was a completely different phone.
The 5C is the 5 but heavier, in plastic, with a slightly better front camera and a marginally larger battery.
Hey, speaking of ridiculous comparisons...
So faster data, new software features and a new pricing model (made available through carriers) makes it a completely different phone? One was a marginal, necessary upgrade (much akin to the 5 getting LTE,) another was a software update (and if that makes it a different phone, the 5C getting iOS 7 makes it a different phone) and the pricing model has nothing to do with the phone's hardware itself.
Compare that to the three qualities you listed about the 5C (all of which are actually related to the phone's hardware) and you pretty much refuted your own argument.
Oh, and let's talk about the 3GS, which was IDENTICAL to the 3G aside from being faster.
You're grasping. The App Store and subsidized pricing are not phone features.
The 3G was an original phone with a plastic back and 3G. The 3GS was way more of a new device, with a plastic back mind you.
This. I explained it in more detail earlier. In summary: profit margin went down due to popularity of older phones (50% of Verizon iPhones sales were non-LTE, go figure), so Apple reduced manufacturing costs of their cheaper phones by making them plastic.
Apple still maintains the same pricing strategy as they used to, except now they have higher margins. That's all there is too it.
The 5C is cheap for Apple, not for us.
Your dismissal of the changes brought by the 3G iPhone are absolutely hilarious. 3G a marginal upgrade? Spare me. It is those changes that I listed prior that spearheaded the upward projection of the iPhone. The 3G iPhone was also the flagship device in 2008.
Now take the 5C. It's a flagship phone transformed into a mid-range offering. It's cheaper to make, heavier to hold, and sits smack in the middle of the 'free' iPhone and the flagship. It's ridiculous to compare the 5C to the 3G in 2008. (Other than the fact that they both feature plastic backs.)
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I am not grasping. I'm 100% right. 3G, 3rd party apps, and subsidized pricing were the reasons why the 3G iPhone changed everything in 2008 for Apple. How exactly is the App Store not a phone feature? Because it's not hardware? Pricing is always a huge factor in any smartphone. You are way too focused on hardware changes which is clouding what was truly important in the iPhone's growth.
3G was an iPhone feature.
App Store was an iOS feature.
Subsidies were a carrier feature.
The App Store was available on the original iPhone so it was not an iPhone 3G specific feature any more than iOS7 is an iPhone 5S specific feature.
Hardware is what defines a specific phone. Software is what defines all iPhones.
Besides 3G, the iPhone had all previous-gen technology, gave it a plastic back, and called it a new flagship phone. The camera was the same, the cpu was the same, the ram was the same, etc. Heck it even had the same chrome surround.
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