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

[9000]

You get a WORSE deal on contract, but it is slightly more convenient, and in the past the only way to use iphone (inertia at work).

Case A
Subsidized iphone 5s costs $200. The cheapest contract plan on Verizon is $80. ATT is $70, but that includes only 300MB data. PLUS MONTHLY TAXES which I don't have the info on, but EASILY $10 more a month, probably twice that. So lets say MINIMUM $80+10 * 24 + $200= $2,360 for a basic plan or $110+10 x 24 +$200 = $3,080 for 4GB of data (high usage).

Case B
Purchase iphone for 650. Monthly plans as low as $39 (Ultramobile) $45 (GoSmart) and $40 (Spotmobile). $40 + 24 + 650 = $1,610

So we have $1,610 vs $2,360 or a minimum difference of $750. Enough to buy a 32GB cellular ipad and get 200MB of free data from t mobile.

There may be reasons for buying an iphone under contract for some people. But price is NOT one of them.

That's a totally unfair comparison. Ultramobile, GoSmart, or Spotmobile ≠ AT&T, Verizon, T-Mobile, or Sprint.

Actually, the cost benefit of no contract is that in California and some other U.S. states, you are taxed twice for part of the phone cost if you get it on a contract. That's like a $70 difference, but I think it ends up more than balancing out.

 

[HVDynamo]

The 5c is an excellent phone. I switched from the 5s to the 5c yesterday and am very happy with my decision.

Seriously, why would you go from a 5S to a 5C? That just makes no sense to me. The 5S is much better hardware in every way, so did you downgrade because of how it looks? Which, if looks is the only issue you should have just bought one of the nice leather apple cases for the 5S, it almost makes it look like a 5C and it comes in a color I like (Black). Also the leather feels so much better than plastic, but that's just my opinion.

 

[djtech42]

I think that the iPhone 5C is the phone that Jony Ive wanted to design for iOS 7

 

[HurryKayne]

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.

Basically next year the 5s could take the 5c place so will be still 629 euros to afford it a 64 bit one and for the Iphone 6 A8 still a lot as today and i'm almost sure
without any quad core (which doesn't concern me) but with still 1GB of Ram.
So to have an A7 some will wait till 2015 .

 

[inscrewtable]

It is my belief that the 5c is a was a bit of an experimental gamble at seeing if they could make a substantially cheaper to manufacture iPhone at an only slightly reduced price on the premium model.

As long as the 5s is still going to sell well and the 5c is at a premium price (considering the missing features) then it's a no risk way of Apple testing the waters.

At the next iphone 6 update, Apple has the opportunity to leave the 5c as is and reduce the cost if it seems like a good idea at the time, update it and keep it at a premium price. Might take a couple of years to decide which way to go.

I suspect Apple would like to keep it just a bit behind with a premium price, but they have the option of letting it lag further at a reduced price.

 

[HVDynamo]

They are scamming the consumer because some analysts and rumor mills made up some predictions of the future based on nothing. They then got angry that they were wrong, but blamed reality instead of themselves. And a big enough group of people bought into the made up stories that they somehow believed that Apple missed the mark, rather than the analysts and forum bloggers getting it wrong.

I don't think scamming means what you think it means.

 

[TTile]

5 and 5S are 1 year productions only. Next year it will only be 5C and iPhone 6.

It's all about the margins baby.

Or, keeping with Apple's naming traditions, they'll have an iPhone C (5), an iPhone CS (5S), and an iPhone Pro (6), eliminating the number scheme once and for all. The C and the CS would be in color, and the CS's colors could be darker than the C's to differentiate the C from the CS among consumers.

As an even crazier guess they could release the 6 in "Pro" and "Air" forms, with the Pro version having a larger screen and the Air retaining the 5/5c/5s's screen + thinner form factor.

----------

It is my belief that the 5c is a was a bit of an experimental gamble at seeing if they could make a substantially cheaper to manufacture iPhone at an only slightly reduced price on the premium model.

As long as the 5s is still going to sell well and the 5c is at a premium price (considering the missing features) then it's a no risk way of Apple testing the waters.

At the next iphone 6 update, Apple has the opportunity to leave the 5c as is and reduce the cost if it seems like a good idea at the time, update it and keep it at a premium price. Might take a couple of years to decide which way to go.

I suspect Apple would like to keep it just a bit behind with a premium price, but they have the option of letting it lag further at a reduced price.

The cost to produce the 5c and the 5s is actually quite similar. Going from a metal -> plastic chassis produces a minimal savings at best. Rather, Apple likely made the switch to differentiate its high-end iPhone from its mid and low-end iPhones.

 

[Matt Leaf]

I got an iPhone 5c a couple days ago, upgrading from a 4, and I have to say I love it. OS7 runs like a dream on it, compared to the choppy, laggy performance of the 4.

However if there's one reason I would say they should keep the 4 / 4s in the lineup. It's, ergonomics, it's the form factor.

While it is cool they made the iPhone larger with the 5, I don't have the hugest hands - the 4 was a much more ergonomic way of handling the phone. It's not impossible, just slightly less uncomfortable than the 4.

If anything they should update the 4 to the color/lightning/chipset of the 5c in the next iteration, to keep the smaller form factor available for those who need it.

 

[ColdShadow]

I'll take 4s over 5c any-day.
It definitely looks and feels much more high end than the awful 5c.

 

[iSayuSay]

I got an iPhone 5c a couple days ago, upgrading from a 4, and I have to say I love it. OS7 runs like a dream on it, compared to the choppy, laggy performance of the 4.

However if there's one reason I would say they should keep the 4 / 4s in the lineup. It's, ergonomics, it's the form factor.

While it is cool they made the iPhone larger with the 5, I don't have the hugest hands - the 4 was a much more ergonomic way of handling the phone. It's not impossible, just slightly less uncomfortable than the 4.

If anything they should update the 4 to the color/lightning/chipset of the 5c in the next iteration, to keep the smaller form factor available for those who need it.

Agreed .. They should just keep the 3:2 screen ratio on iPhone even if they want to make it bigger.

Don't just make it taller. Something like 1152x768 at 4.2" will be godsend. Steve said 3:2 is the golden ratio for a smartphone and in this case I agree with him.

 

[KohPhiPhi]

The iPhone 5C never made much sense, being priced so close to the flagship iPhone 5S. And the market seems to agree: 75% of iPhone sales have gone to the iPhone 5S.

I think Apple has picked the wrong way to segment their iPhones. Instead of segmenting their phones as plastic color vs. premium aluminum, it should be segmented in screen sizes: 4", 4.8", 5.5". In this regard, I find Samsumg's strategy more sensible, giving the customers the options they truly care for.

 

[everything-i]

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.

The reason the 5 has been discontinued is because it had major problems in manufacture which could not be resolved. They had to kill that design and the 5C is the result. This is why there is no black option for the 5S, the black anodised coating was way too soft leading to far too many coming off the production line with damaged finish. The internals are also redesigned in order to simplify assembly.

 

[osofast240sx]

cook is in DENIAL.....

Nope u are! Thinking u can run apple better

 

[Internaut]

One thing seems clear to me. Apple's approach to base memory is getting old, and this is a problem across the product range. For iPhone, I think a cloudy user should be happy enough with 16gb, while someone who needs to carry content around probably needs to look at 32gb as the minimum. For retina iPad, I think 32gb should be the floor.

That's not to say an 8gb 4s is useless - I think they will sell by the bucket load to corporates who just want a smartphone, but for consumers (the real power users IMHO) I think the current floor is low.

 

[osofast240sx]

One thing seems clear to me. Apple's approach to base memory is getting old, and this is a problem across the product range. For iPhone, I think a cloudy user should be happy enough with 16gb, while someone who needs to carry content around probably needs to look at 32gb as the minimum. For retina iPad, I think 32gb should be the floor.

That's not to say an 8gb 4s is useless - I think they will sell by the bucket load to corporates who just want a smartphone, but for consumers (the real power users IMHO) I think the current floor is low.

The 4s accounts for 22% of iPhone sales. 30% upgrade within 3 - 6 months.

 

[Tiger8]

We'll have a 5c as "last year's version", a 6c as the slightly cheaper but more colorful version and the premium 6 probably still in aluminum and glass. I like this lineup. As Tim mentioned, now they have three phones at three different price points. Once we get the devices with the old connectors and 3.5" screens out of the way, the lineup will seem more cohesive.

Only problem though, the 6 is very likely to be a bigger device, if rumors are true (which, at least over the past 3 years, seemed to be the case).

why do you rush things? 6c will be the 2015 cheap version!

 

[Adelphos33]

The 5c will be a very good product for apple, especially when it goes to $0 on contract next year (5s will remain in the lineup, IMO, with a slightly larger 6 at the top end)

 

[ds2000]

The company has sold 421.3 million smartphones since the iPhone's launch in 2007.

That's a staggering number

 

[thiagos]

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.

When you sign a contract, you will owe the phone company $350 if you decide to cancel your service. So it is $350, not $200.

The 5C should have been free, period. What is their excuse for selling an iPad 2 (3 year old technology) for $399? They might get away with it now but the competition is catching up... They are acting just like Microsoft used to, thinking people need Windows regardless so they can do whatever they want. Look where they are now.

 

[the8thark]

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.

Apple would have to be pretty dumb to make the phablet you want. But even Apple are not perfect. The have made mistakes in the past.

 

[Count Blah]

It definitely won't get all of whatever the new features in iOS 8 are. But then again, it didn't get all the new features of iOS 7, either. (For comparison: the iPhone 4 lacked some features in iOS 6, and it still got iOS 7.)

The iPod Touch 4 example is the reason I refuse to buy an Apple TV right now, even though I am in the market for one. I"m not going to get burned by Apple again by buying something that will be EOL'd in 6 months.

Fool me once, shame on Fool me twice, shame on me.

 

[skinned66]

I'll have to disagree with Apple on this one; the 4S is not an entry level phone. It's an old premium phone that qualifies for a senior citizen's discount.

Not saying that it's terrible. But I'll bet it doesn't last as long as the 3GS on the software path.

 

[Goftrey]

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.

I reckon the iPhone (X)C will be updated once every couple of years - like the iPod Touch.

Eg. when the iPhone 6 is released the 5C will become the entry model & Apple will knock the mid-tier out altogether given the 5C then will be running 2 year old hardware. Then when the 6S comes out the iPhone 6C will be announced & so on.

 

[musika]

Seriously, why would you go from a 5S to a 5C? That just makes no sense to me. The 5S is much better hardware in every way, so did you downgrade because of how it looks? Which, if looks is the only issue you should have just bought one of the nice leather apple cases for the 5S, it almost makes it look like a 5C and it comes in a color I like (Black). Also the leather feels so much better than plastic, but that's just my opinion.

The 5s was giving me a lot of problems and I wasn't happy with the build quality. Touch ID was getting annoying on me too, because it's inconsistent when your hands are too dry or too moist. I had to turn it off. Another thing is how it feels in your hand, and the 5c feels astoundingly better in my hand. I'm really a fan of the design, I think the colors are a fun addition and I enjoy having my phone be colorful, right now. I don't buy leather, so I wouldn't have bought one of the cases. It also hit me that I had spent $400+ on a phone that I wasn't really enjoying all that much.

It shouldn't be a bad thing that I decided to go with a less expensive phone. Once you take away Touch ID, all I really had left was a better camera, slow motion video, and a "faster" phone (I know the 5s is faster, but right now it doesn't feel any faster).

At least my 5c isn't rebooting on me all the time.

In the end, it's a phone. I need something reliable, and that's what the 5c was to me, and I'm more and more surprised by it everyday.

 

[Giuly]

Nevermind.