Theory Behind 5c's Unexpected High Price

Discussion in 'iPhone' started by Dulcimer, Sep 10, 2013.

  1. Dulcimer macrumors 6502a

    Dulcimer

    Joined:
    Nov 20, 2012
    #1
    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.
     
  2. KenAFSPC macrumors 6502a

    Joined:
    Sep 12, 2012
    #2
    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.
     
  3. Carlanga macrumors 604

    Carlanga

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    Nov 5, 2009
    #3
    No they won't have different prices, they will have the iPhone 4 for sale instead over there.
     
  4. dextr3k macrumors 6502

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    Nov 26, 2012
    #4
    The prices are up at the Chinese site already, you just have to dig further.

    And China is paying a LOT more than US:

    [​IMG]

    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
     
  5. Dulcimer thread starter macrumors 6502a

    Dulcimer

    Joined:
    Nov 20, 2012
    #5
    Whoops, never mind. Mods, you can close this thread.
     
  6. Velin macrumors 65816

    Velin

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    Jul 23, 2008
    Location:
    Hearst Castle
    #6
    That is some expensive tech if you are in China.
     
  7. dextr3k macrumors 6502

    Joined:
    Nov 26, 2012
    #7
    Yeah :(

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

    I am NOT upgrading this year, lol.
     
  8. einmusiker macrumors 68030

    einmusiker

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    Location: Location:
  9. mytakeontech macrumors 6502a

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    Jun 14, 2010
    #9
    Wow...
     
  10. lazard macrumors 65816

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    Jul 23, 2012
    #10
    you can see why Apple has a paltry market share in China.
     
  11. osofast240sx macrumors 68030

    osofast240sx

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    Mar 25, 2011
    #11
    Why china??? The iPhone c is by no means a low end phone.
     
  12. Mrbobb macrumors 601

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    Aug 27, 2012
    #12
    dextr3k, would you post/link China prices for comparables from Samsung, HTC, Huawei etc?
     
  13. Altis macrumors 68020

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    Sep 10, 2013
    #13
    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.

    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.
     
  14. dextr3k macrumors 6502

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    Nov 26, 2012
    #14
    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.
     
  15. lazard macrumors 65816

    Joined:
    Jul 23, 2012
    #15
    HTC One - 3,580 yuan
    Samsung Galaxy S4 - 5,199 yuan
    Xiaomi mi 2S - 1,699 yuan
     

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