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Tim Cook: iPhone 5c Wasn't Meant to Be an Entry-Level Phone

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Apr 12, 2001
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During its financial conference call today, Apple CEO Tim Cook shared a new perspective on the company's iPhone strategy.

Cook was asked questions about how Apple plans to address lower price segments of the smartphone market and where the iPhone 5c stands in the lineup. He stated that the iPhone 4s is now the entry-level iPhone contrary to the pre-launch belief that the iPhone 5c would be the entry-level device:
If you look at what we've done, we're selling the iPhone 4s as our entry offer. We sell the iPhone 5c as the mid-tier and the 5s. Our goal is to have growth across the iPhone but we want each of those categories to grow as compared to what we were doing previously. If you look at the total that we're making in the low end and mid tier and high end, the sum there, we'd like to grow in each one of those. We're really please that we did that.
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Cook also elaborated the philosophy of seeing the iPhone 4s as the entry level iPhone after discussing foreign device pricing strategy and why the company did not keep the iPhone 4 in its lineup given its sales success:
What we did with our lineup this time was the 4s is replacing the 4. If you look at the US as an example, the 4s is now free. The 4 was free previously. When you translate that out of the US, it depends on the market as to what specifically happens. Currency changes and the strength of the dollar doesn't always play in our favor in some geos.

We see the 4s as our entry iPhone offer that gives somebody the ability to access the entire ecosystem as a fantastic product. We understand that there is elasticity in that market and it will move accordingly.
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Apple sold a record 150 million iPhones in fiscal 2013, up 25 million units from 2012. The company has sold 421.3 million smartphones since the iPhone's launch in 2007.

Article Link: Tim Cook: iPhone 5c Wasn't Meant to Be an Entry-Level Phone
 
Article Link
https://www.macrumors.com/2013/10/28/tim-cook-iphone-5c-wasnt-meant-to-be-an-entry-level-phone/
So what's the deal next year? Will Apple sell the current 5c as the entry phone and then have a 5cs as the mid model with the the iPhone 6 as the high end model? Or will they pull an iPad 2 and claim that there's enough demand for the iPhone 4S to continue and complete the line up with a 5cs and iPhone 6.

For consumers, I believe it's best that the jump to both 64bit architecture and lighting connectors be completed. After that, we can go back to this model of selling 2 year old products.
 
Can't wait to read all the comments from users who say it should've been because rumours said so.
 
Wasn't the best move keeping the 4S around. Yet another year before the 30 pin connector is killed.
 
IMHO they should have made the 5 free, then everyone would have the lightning cable and a 4 inch screen sooner.

Oh wait, they couldn't do that because they repackaged the 5 and called it a 5c.

Great product but stop scamming the consumer. I really don't like how they release new products and then remove the previous gen only to continue selling a 2 gen old product. They did it with the iPad as well.
 
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jmh600cbr said:
IMHO they should have made the 5 free, then everyone would have the lightning cable and a 4 inch screen sooner.

Oh wait, they couldn't do that because they repackaged the 5 and called it a 5c.

Great product but stop scamming the consumer. I really don't like how they release new products and then remove the previous gen only to continue selling a 2 gen old product. They did it with the iPad as well.
Click to expand...

They've never done that though.. When the 5 was the current gen, then the 4S was 100, and the 4 was free. All they did now was what they've always done, but instead of making the old model 100, they released a newer model with the older model's specs, in color, and with a better battery life. All they did this time around was MORE than they usually do for the customers.
 
Count Blah said:
Yeah, free. :rolleyes:

Sure Timmy.

Not all consumers want to lock themselves into onerous 2-year contracts.
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Better than locking into a contract and still paying an additional 200 or so on top of that for a phone. I mean, they can't just give it away for absolutely nothing.
 
Apple needs to stop selling outdated technology. They're selling the iPhone 4s and the iPad 2 which won't even be compatible with iOS 8 next year. Hell, the iPad 2 is barely compatible with iOS 7. It runs like crap.
 
iPad 2 selling at $399

so iPhone 5C can sell at $550 - on contract pricing.


Software support is the main key here; Hopefully when iOS 9 comes out A5/A5X is still supported.
 
More margin with the 5C compared to the 5, and more for the 5S because of the higher price.

It's just a replacement because of the margin.
 
likemyorbs said:
Apple needs to stop selling outdated technology. They're selling the iPhone 4s and the iPad 2 which won't even be compatible with iOS 8 next year. Hell, the iPad 2 is barely compatible with iOS 7. It runs like crap.
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I agree with this in a sense, although if they were to discontinue the iPad 2 then they should also discontinue the original iPad Mini since they're both the same specs pretty much. I understand keeping the iPad 2 in the line-up, although I do think it's overpriced.
 
al256 said:
So what's the deal next year? Will Apple sell the current 5c as the entry phone and then have a 5cs as the mid model with the the iPhone 6 as the high end model? Or will they pull an iPad 2 and claim that there's enough demand for the iPhone 4S to continue and complete the line up with a 5cs and iPhone 6.

For consumers, I believe it's best that the jump to both 64bit architecture and lighting connectors be completed. After that, we can go back to this model of selling 2 year old products.
Click to expand...

If they do a significant redesign, then they won't need to do a 5CS, they could just do 5C, 5S, and 6. If it looks the same though, yeah it might be a 5CS.
 
dosent make this whole thing look any better to me if it is a mid tier.

following comments relate to off contract prices.

the 4s and 5c are insanely expensive for what they offer and only offering the entry model in 8 gig in this day and age is pathetic. then as mentioned above its selling last years model while they have a pretty firm rule on how long they support older devices with each ios release.

apple does some great and wonderful things but i feel they are so disconnected in some respect its laughable.
 
laserbeam273 said:
If they do a significant redesign, then they won't need to do a 5CS, they could just do 5C, 5S, and 6. If it looks the same though, yeah it might be a 5CS.
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This makes total sense.
The 5C and 5S will probably become low and mid tier with a 4 inch display, and then the iPhone 6 will be the bigger screen iPhone. I wonder if they'll make it extra thin and name it iPhone air. :p
 
jmh600cbr said:
IMHO they should have made the 5 free, then everyone would have the lightning cable and a 4 inch screen sooner.

Oh wait, they couldn't do that because they repackaged the 5 and called it a 5c.

Great product but stop scamming the consumer. I really don't like how they release new products and then remove the previous gen only to continue selling a 2 gen old product. They did it with the iPad as well.
Click to expand...

How are they "scamming the consumer?" The 5 (if it wasn't discontinued) would have been at the same price point as the 5c. They didn't inflate the price. Plus the 5c has an upgraded battery and camera---two things the 5 wouldn't have had. This latter fact would imply that Apple is in fact giving the consumer 'more for their money' with the 5c when compared to the 5.
 
troop231 said:
Wasn't the best move keeping the 4S around. Yet another year before the 30 pin connector is killed.
Click to expand...

Yeah you'd think that across their products they'd want to kill off the 30-pin connector and move everyone onto a 64-bit device. Oh well.
 
likemyorbs said:
Apple needs to stop selling outdated technology. They're selling the iPhone 4s and the iPad 2 which won't even be compatible with iOS 8 next year. Hell, the iPad 2 is barely compatible with iOS 7. It runs like crap.
Click to expand...

Exactly. If people want the latest that iOS8 has to offer then they will have to upgrade iPads. Again. ;)
 
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