Walmart Drops iPhone 5c Pricing to $45 On Contract Through the Holidays

[HenryDJP]

Something that is selling well doesn't need discounts 2 weeks after launch.

#capitalism

Well in the first place it's not Apple dropping the price on the 5C, it's the 3rd party retailers. And the fact that it's 2 weeks after launch as you mentioned, much of it stems off the fact the 5S is sold out and retailers don't want to lose a sale this close to the holiday season. If the phone truly wasn't selling well it wouldn't have been discounted that soon anyway.

True. I'm not sure why everyone's being so defensive here.

I think much of the reason people are being defensive is because there are many Anti-Apple people here who very much want the iPhone 5C to fail and they are either very vocal about it or they make snide remarks about the phone that people find offensive. Your example about Apple not pricing the phone correctly as they did in the past with the original iPhone doesn't apply here. With the original iPhone, Apple just got into the mobile phone business and they just didn't have a clue on how to price a subsidized phone. After 7 years of making phones they know how to price them by now.

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I agree with him

And I couldn't care less who you agree with. Your opinion of who I disagree with wasn't asked for.

 

[SlCKB0Y]

Something that is selling well is selling well. #correlationVersusCausation

BTW, in capitalist systems you want to have the lowest price so folks buy from your store versus another. Retailers are competing with each other (including Apple Store)

This is only necessary when supply exceeds demand. When demand exceeds supply there is no reason for anyone to discount anything as evidenced by the static price of the 5S at the very same retailers who are discounting the 5C.

and they are also competing against the iPhone 5s (which they don't have in decent supply).

This competition with the iPhone 5S should have been factored into the initial RRP that Apple came up with - it should have been mitigated by the pricing.

The fact that the 5S is sold out makes the situation worse for the 5C. Consumers who are unable to source a 5S are not going with 5C because the price differential is not great enough to offset the reduction in hardware specifications.

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And the fact that it's 2 weeks after launch as you mentioned, much of it stems off the fact the 5S is sold out and retailers don't want to lose a sale this close to the holiday season.

If the iPhone 5C was a competively priced product as you maintain, short supply of the 5S should increase demand of the 5C which in turn should reduce the need for discounting, not increase it. You've got it backwards.

If the phone truly wasn't selling well it wouldn't have been discounted that soon anyway.

Huh? You don't discount things that are selling without issue at the current price point. Why would you voluntarily reduce your profits for no reason?

 

[calaverasgrande]

basically the colors are tepid and it's in the shadow of the 5S.
It's not awful, but it's nothing I would sign a new 2 year contract for.

Though I could get used to the white one.

 

[calaverasgrande]

Still wouldn't mind seeing Apple throw in a 'masculine' darker colour into the 5c mix.

Ideally piano black, but heck I'd settle for a Space Grey colour.

I was considering grabbing a 5c when the 5S was impossible to buy for a while. But I just couldnt come to grips with any of the colors.
The pink and yellow are right out. Ick.
The blue and green are just a shade too bright, without being saturated?
Which leaves the white which just screams dirt magnet to me.
(ever own a white car?)
It kind of reminds me of certain Toyota and Subaru models that only come in yucky colors.
Sure it's only a color, but since I have to live with it for a while, I get picky.
So I held out for space gray.
Being a stodgy old gen x-er I pretty much wear grey and black anyway.

 

[KPOM]

Your example about Apple not pricing the phone correctly as they did in the past with the original iPhone doesn't apply here. With the original iPhone, Apple just got into the mobile phone business and they just didn't have a clue on how to price a subsidized phone. After 7 years of making phones they know how to price them by now

Not entirely. This is the first year that they are introducing two "new" phones. Yes, the 5c is mostly a cosmetic/manufacturing change to the 5, but it's no different from Google releasing the Moto X with older technology. Apple is marketing the 5c as if it's a brand new product, because for all intents and purposes it is. The flagship phone sales are highly cyclical - they sell a ton the first two quarters and then taper off. I think they want the 5c and its successors to be a more stable volume product geared toward people not looking for the latest and greatest.

In that sense, Apple hasn't done this before. When the 3Gs went on sale they kept the 3G around for ayear, and then when the 4s went on sale they expanded that to a 3-phone strategy by keeping the 3Gs around. This time they replaced the 5 rather than drop it into the middle category. They priced the 5c the same as history suggested they would have priced the 5. However, the 5c is plastic, which might well affect perceptions, particularly since Apple heavily promoted the exquisite designs of the 4, 4s, and 5 in the past. "Fair" or not, people perceive plastic phones a bit differently (yes,Samsung has no problem selling high-end devices in plastic, but they don't rely on fashion as much as Apple), and so maybe the old pricing model needs to be tweaked.

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I was considering grabbing a 5c when the 5S was impossible to buy for a while. But I just couldnt come to grips with any of the colors.

I'm a bit surprised they didn't produce a black version. It would look sharper than the white one and from a distance wouldn't look that different from the 3GS or 5. Perhaps they thought more women would buy the 5c. However, the gold and to a lesser extend silver 5s probably have that market covered.

 

[HenryDJP]

Not entirely. This is the first year that they are introducing two "new" phones. Yes, the 5c is mostly a cosmetic/manufacturing change to the 5, but it's no different from Google releasing the Moto X with older technology. Apple is marketing the 5c as if it's a brand new product, because for all intents and purposes it is. The flagship phone sales are highly cyclical - they sell a ton the first two quarters and then taper off. I think they want the 5c and its successors to be a more stable volume product geared toward people not looking for the latest and greatest.

In that sense, Apple hasn't done this before. When the 3Gs went on sale they kept the 3G around for ayear, and then when the 4s went on sale they expanded that to a 3-phone strategy by keeping the 3Gs around. This time they replaced the 5 rather than drop it into the middle category. They priced the 5c the same as history suggested they would have priced the 5. However, the 5c is plastic, which might well affect perceptions, particularly since Apple heavily promoted the exquisite designs of the 4, 4s, and 5 in the past. "Fair" or not, people perceive plastic phones a bit differently (yes,Samsung has no problem selling high-end devices in plastic, but they don't rely on fashion as much as Apple), and so maybe the old pricing model needs to be tweaked.

Fair enough, point well taken.

 

[dumastudetto]

This phone will be the most popular phone in America by February.

It's already the second most popular phone in America. I'm expecting huge sales over the holidays to widen Apple's lead, whether the 5c can eclipse the 5s is doubtful though. But first and second for Apple

 

[512ke]

The 5c is selling very well. It will continue to sell very well just like the 4s and 4 did at this time last year.

 

[AppleScruff1]

I love how people can post that the 5C isn't selling well when on the front page of A. I. There is a chart showing how it's the number two best selling phone for several of the largest U. S. Carriers. Classic. Prejudice trumps reality.

That was for 10 days in September which happen to be the 10 days including launch day. I would venture to guess that the iPhones largest sales are within the first week or so of launch. The next few months will tell the true story, IMO.

 

[Blakjack]

Unless Blakjack is actually an iPhone 5c, I don't think you know what the word "ego" means.

And your ego is wrapped up in the success of Apple's products, why?

What does my ego have to do with the success or fail of a 5C? I didn't say anything about myself. I think this phone will sell extremely well. If that makes me cocky of arrogant....kill me now.

 

[Spacial]

Seems like they can't give these away...

It's a matter of discovery. Everything sells if it's priced right. Once that number is identified in each target market the phones will sell. Apple is used to a take it or leave it attitude, those days are fading. I suspect Apple will fight that trend but eventually cave in. Having a stockpile of unsold phones would harm them more. At least from an image standpoint. Financially Apples so fat & happy their nearly untouchable.

 

[john123]

I don't appreciate your condescending response.

If the phone was selling so well they wouldn't offer a discount.

Hence the sales aren't doing well. Got that?

End thread. (Slams the door)

Actually, no, not "end thread." Your theory for the discount is just that—a theory. There are a whole bunch of others that, if true, invalidate your theory. For starters, retailers are in competition with each other, and some retailers (Walmart in particular) are notorious for trading profit margin dollars per unit in exchange for higher revenues.

Further, there's a little thing they teach in economics called price elasticity of demand. An item can be selling quite well, but due its elasticity, an entity may make more overall profit by dropping its price.

Naively insisting that your particular theory is true and then putting your hands over your ears while screaming NA-NA-NA-NA isn't terribly mature...

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If the iPhone 5C was a competively priced product as you maintain, short supply of the 5S should increase demand of the 5C which in turn should reduce the need for discounting, not increase it. You've got it backwards.

Actually, you've both kinda got it wrong. Your argument presumes that the two are considered possible substitutes in the market. For an awful lot of Apple consumers, that logic doesn't hold.

 

[Spacial]

And your ego is wrapped up in the success of Apple's products, why?

This is not unusual behavior, it's the legacy of Steve Jobs. He convinced hoards of people that Apple changed their world. It's like major league sports, it draws in those who need hero's to worship. Someone to look up to. There's nothing wrong, it sells billions of dollars in Apple products.

 

[macs4nw]

Seems like they can't give these away...

I believe that might change once they hit their stride outside North America. If sales remain lackluster, a price cut and/or incentives could come. Remember that $200 price cut on the 8GB original iPhone in Sep 2007, from it's initial price of $599? After a public outcry, the early adopters received a $100 store credit.

 

[BC2009]

The difference is those are all older models. The S4 is about halfway through its product cycle, and the Note 2 is "last year's model."

Also, some of the 5c sales are carriers refilling their stock. It's pretty safe to say that whatever 5s models the carriers bought were sold to end customers, but it isn't the same with the 5c as it hasn't sold out. October will be the key. If the 5c is still #2 then it has sold well. If it is #4 then it means that the September phones took a long time to sell through to end users.

So if the iPhone 5c was the iPhone 5 then wouldn't retailers be discounting it like they did last year with the 4s? Last year retailers had plenty of 16GB 4S models on the shelf as well as plenty of 8GB iPhone 4 units. Yet the 4S had the same price differential versus the iPhone 5 and the same gap in hardware. The 4S remained the second best selling smartphone world-wide until the introduction of the Galaxy S4. Do you think the 5c is fairing worse than the 4S from last year? That is what 5c is competing against, not the iPhone 5s.

Given the marketing behind the 5c and the "new look" factor for teens wanting something new to show off it is almost certain that the iPhone 5c will outsell the 4s throughout the entire year, but especially in the holiday quarter and as late adopters move to upgrade.

 

[satchmo]

Yeah, I sense Apple wanted to completely differentiate the 5c from the 5s by contrasting subtle metallic earth tones with bold bright colours...hence no black, navy or grey plastics.

The 5c colours seem to be targeted at kids, women and hipsters.

But, it wouldn't be so difficult for Apple to slip in a space grey option as they just did this with the iPod line.

I was considering grabbing a 5c when the 5S was impossible to buy for a while. But I just couldnt come to grips with any of the colors.
The pink and yellow are right out. Ick.
The blue and green are just a shade too bright, without being saturated?
Which leaves the white which just screams dirt magnet to me.
(ever own a white car?)
It kind of reminds me of certain Toyota and Subaru models that only come in yucky colors.
Sure it's only a color, but since I have to live with it for a while, I get picky.
So I held out for space gray.
Being a stodgy old gen x-er I pretty much wear grey and black anyway.

 

[ValSalva]

Walmart wants to get people in their stores where they will buy other things which they will make a profit from. So it's in Walmart's interest to either break even or lose a little on this 5c sale.

I still haven't seen a 5c in the wild though.

 

[69650]

Now that Apple have re-embraced coloured plastic with the 5c, I wonder if we'll see the re-emergence of the plastic colour MacBook? It would make sense to keep the aluminum MBA and MBP then add a basic 13" colour MB to replace the old non-Retina MBPs in a range of colours to match the 5c. I could see that being popular amongst younger users, teenagers and students. Get a matching colour MB and iPhone.

 

[OneMike]

If only the unlocked price was less. I'd be using the 5C right now instead of my 5S.

 

[Chupa Chupa]

This is not unusual behavior, it's the legacy of Steve Jobs. He convinced hoards of people that Apple changed their world. It's like major league sports, it draws in those who need hero's to worship. Someone to look up to. There's nothing wrong, it sells billions of dollars in Apple products.

But Apple/ Jobs ideas DID change the world:

Cellcos have weaker power to dictate to hardware makers what features to include or exclude.

Tablets are quickly displacing traditional PCs of both form factors as the computer of choice for consumers & even in some businesses.

The iPod & iTunes Store transformed the music industry.

I agree though it's odd that anyone not directly involved with these projects should feel any personal accomplishment. But that's not Steve Jobs, it's the "everyone gets a trophy" society we live in that promotes others glomming onto others achievements so they don't feel bad.

 

[terraphantm]

This competition with the iPhone 5S should have been factored into the initial RRP that Apple came up with - it should have been mitigated by the pricing.

The fact that the 5S is sold out makes the situation worse for the 5C. Consumers who are unable to source a 5S are not going with 5C because the price differential is not great enough to offset the reduction in hardware specifications.

It should have been, but it isn't. If one can afford to pay a the monthly fee that most iPhone plans cost (especially on AT&T and Verizon), then the extra $100 for a 5S shouldn't hurt (and if it does, then perhaps having such a phone that requires such an expensive plan isn't something you can afford in the first place)

My guess is that Apple figured plenty of people were willing to buy the old model for $100 less in previous years. But in previous S years, the old model looked identical to the new one. Now it doesn't, and there are a lot of people who care more about looks than anything else.

If this phone was free on contract, then you'd be able to tap into the new markets (again, people who can afford the plans should be able to afford a couple hundred bucks every 2 years, but I know not everyone has the best financial planning)

 

[malnar]

Seems like they can't give these away...

Nope, quite the opposite, actually. You're not thinking financially. This is a cheaper product to build - easier and more readily available components, etc. - so Apple wants to flood the market with them. Let other stores drop the price and suddenly lots of people owns them, then the price goes back to normal, people see them everywhere, and now they want one too. Now Apple can say they have the TWO best selling new smartphones on the market, and it looks great to investors, etc. Not to mention places like Best Buy want to get you in to their stores for other things - they'll sign you up for protection plans and other junk in a heartbeat.

Plus I think Apple is quietly pushing the 5c because the iPhone 6 is going to share a very similar body style (rounded corners rather than 90 degree angles, possibly even a high-quality non-metal backing) and they want people to start getting used to this design early.

I'll also mention that the only people I know who bought new iPhones bought the 5c - and had no interest in the 5s after checking out the 5c.

 

[iGrip]

Price drops around the holidays are not terribly unusual for major iPhone retailers, but stores are being rather aggressive in announcing price drops on a brand-new iPhone model so soon after launch.

Sales must be truly horrible for these retailers to give up so much of the selling price. They seem to think it is better to lose a little on each sale than to let their warehouses fill up and lose everything.

 

[john123]

I'll also mention that the only people I know who bought new iPhones bought the 5c - and had no interest in the 5s after checking out the 5c.

Your small pool of anecdotal friends isn't exactly evidence, especially given that the 5S is the phone that most people have interest in—not the plastic'ed up 5C.

 

[iGrip]

I still think this is a little expensive, if they make it to $10 on contract without trade in the old iphone, i would definitely love it.

After the holidays, they might pay YOU to take one, by reducing your monthly bill or via a mail-in rebate, or even a gift card for the retailer.