Is iPhone 5C Really Cheap?
There were many speculations around the launch of iPhone this time. Many of these came true and we have two iPhones launched simultaneously this time. Some people are pleased about this, while others are furious. Most people however agree on one point-
The price point is not worth the new iPhone 5C.
[Note the “C” in 5C does not stand for Cheap, it stands for “Color”]
For 5S, there is no argument because it is the flagship iPhone therefore it can command anything from thousands of rupees to your Kidney in return. iPhone 5C however was supposed to be cheap.
And compared to iPhone 5S, it is. iPhone 5S starts where the price of iPhone 5C ends. Of course on looking closely and seeing the price of the non-contract phones one realizes that it will still cost an upward of Rs. 35000 in India and over $500 in US.
In other words, iPhone is not cheap even in its newest cheaper avatar. Now, I have read quite a few articles on the topic but there are two things that I have yet to see people discuss about. I thought to bring them up.
First is that why was this step taken. People are talking about how this step is foolish and would not affect Android’s stride. Most probably this is all true. But why was this step taken in the first place?
I believe that it was to preserve margins. Apple has burnt its hands in the iPad mini. The product is successful but it does not give the same profit margins as its elder sibling and because of this Apple’s revenue fell despite an increase in its units sold. Apple does not want this to happen again. Its all good to launch a phone that can be brought to masses but it doesn’t mean that their bottom lines should suffer because of that.
Second point is that how is iPhone 5C different from iPhone 5? Except the colors of course.
Earlier, Apple had utilized a practice where it would launch a new phone and reduce the price of the previous phones. So, when iPhone 5 was launched, people could buy iPhone 4S at a reduced price and iPhone 4 at even lesser amount ($99 and $0 to be precise).
Now Apple has launched a new phone with similar configuration as iPhone 5 at the same price range. While the higher end model is upgraded. So, except for the nomenclature, how has the strategy changed for Apple?
I may be wrong here and maybe there is some difference that I am unable to perceive. But as I see it, Apple is playing on the psyche that people prefer a cheaper new phone than an older model even though in reality they are the same thing.
And yes, for anyone saying that iPhone 5 had aluminum body whereas iPhone 5C is Polycarbonate, please don’t. That is just a downgrade.
So, what do you guys think?