Theory Behind 5c's Unexpected High Price

[Dulcimer]

Everyone was expecting a 5c starting price of $450 to $500, which was based on a rumour back in August. Perhaps the 5c is really meant for China after all.

By having a higher cost in the US, Apple keeps profit margins high for the consumers willing to pay for it here. In contrast, Chinese consumers are less likely to pay such a premium price, so Apple would sell it at a lower cost to increase the number of Chinese consumers (after all, reports stated that Cook and China Mobile came to some sort of agreement over the iPhone).

If you look on the Chinese Apple site, there are no prices listed. And remember, there is a separate Apple event tomorrow in China, perhaps to mention the price for Chinese consumers.

The only kink in this theory is if someone imported a Chinese iPhone 5c, but maybe doing so is more expensive than it's worth.

 

[KenAFSPC]

It's an iPhone 5 in a plastic case for $100 less. Switching to a plastic case didn't save $100. It probably saved $5. That means Apple is selling the iPhone 5 for $95 loss than they were before. It they were to give it away for free with contract, they'd be selling it for $195 less than before. That's evidently a greater margin hit than Apple will accept.

 

[Carlanga]

No they won't have different prices, they will have the iPhone 4 for sale instead over there.

 

[dextr3k]

The prices are up at the Chinese site already, you just have to dig further.

And China is paying a LOT more than US:

Today's exchange according to xe.com
1.00 USD = 6.11790 CNY

So

iPhone 5S 16gb/32gb/64gb = $865 / 996 / 1127
iPhone 5C 16gb/32gb = $734 / 865
iPhone 4S 8gb = $538

 

[Dulcimer]

The prices are up at the Chinese site already, you just have to dig further.

And China is paying a LOT more than US:

Image

Today's exchange according to xe.com
1.00 USD = 6.11790 CNY

So

iPhone 5S 16gb/32gb/64gb = $865 / 996 / 1127
iPhone 5C 16gb/32gb = $734 / 865
iPhone 4S 8gb = $538

Whoops, never mind. Mods, you can close this thread.

 

[Velin]

That is some expensive tech if you are in China.

 

[dextr3k]

Yeah

I spent $1600 buying 2 16gb iPhone 5's for my wife and I last year.

I am NOT upgrading this year, lol.

 

[einmusiker]

incredible ripoff

 

[mytakeontech]

Yeah

I spent $1600 buying 2 16gb iPhone 5's for my wife and I last year.

I am NOT upgrading this year, lol.

Wow...

 

[lazard]

The prices are up at the Chinese site already, you just have to dig further.

And China is paying a LOT more than US:

Image

Today's exchange according to xe.com
1.00 USD = 6.11790 CNY

So

iPhone 5S 16gb/32gb/64gb = $865 / 996 / 1127
iPhone 5C 16gb/32gb = $734 / 865
iPhone 4S 8gb = $538

you can see why Apple has a paltry market share in China.

 

[osofast240sx]

Everyone was expecting a 5c starting price of $450 to $500, which was based on a rumour back in August. Perhaps the 5c is really meant for China after all.

.

Why china??? The iPhone c is by no means a low end phone.

 

[Mrbobb]

dextr3k, would you post/link China prices for comparables from Samsung, HTC, Huawei etc?

 

[Altis]

It's an iPhone 5 in a plastic case for $100 less. Switching to a plastic case didn't save $100. It probably saved $5. That means Apple is selling the iPhone 5 for $95 loss than they were before. It they were to give it away for free with contract, they'd be selling it for $195 less than before. That's evidently a greater margin hit than Apple will accept.

I suspect Apple couldn't justify selling the 5 for $100 less, as well, for two reasons:

1. It still costs a lot to build
2. The 5S isn't upgraded enough for many people to justify the $100 gap

However, by changing it to plastic, people will feel the 5S is worth it over the 5C, whereas they wouldn't have over the 5.

Thus, I think the 5C is really in existence to support the 5S sales.

The real buy is a used 5, which are going at around 400-600 ish for a decent one (depending on size). 5 has the internals of the 5C with the form and build of the 5S. Not to mention, you can put a plastic case on it (of any colour) and it will still only be as thick as the 5C.

No they won't have different prices, they will have the iPhone 4 for sale instead over there.

I don't know, the Chinese are known to like their tech toys, from what I understand... the demand for a ~3 year old phone can't be too great.

 

[dextr3k]

dextr3k, would you post/link China prices for comparables from Samsung, HTC, Huawei etc?

The thing about those are that the official prices are posted, but there is SO MANY that it becomes a *****torm trying to figure out EU versions, Korean Versions, local versions, and the tons of local chinese competitors in the Android market such as Xiaomi, which is very popular here.

So I would say the prices for those are approx the same as US prices, but they are more or less under a lot of pressure as they are fighting with price, and not features.

 

[lazard]

dextr3k, would you post/link China prices for comparables from Samsung, HTC, Huawei etc?

HTC One - 3,580 yuan
Samsung Galaxy S4 - 5,199 yuan
Xiaomi mi 2S - 1,699 yuan