4 ms·

If someone can afford a $549 phone, they most probably can afford a $649 phone. At this price range, it's not really a rational decision. It's how desirable the

If someone can afford a $549 phone, they most probably can afford a $649 phone. At this price range, it's not really a rational decision. It's how desirable the product is (which Apple is very good at projecting). So the customer might as well go all the way and get the top of the line phone. Well I would. Imagine spending $549 and then your friends saying "Oh, but its not 5S".

grinich 13y ago
Those sound like lousy friends.
- pavlov 13y ago
  I suspect that the kind of people who brag to their friends about a new phone probably have pretty lousy friends -- like-minded souls and all that...
noelwelsh 13y ago
Indeed. Furthermore, the type of person who absolutely must get an iPhone minutes after it is released is not the type of person who is price sensitive. 5C buyers are more likely to be upgrading their phone when their existing contract expires etc. I would expect demand for the 5C to rise over time, particularly if the price differential between the 5C and 5S is widened.
fijter 13y ago
Indeed, the 5c is just a bad deal; You get the iPhone 5, a model that would've been reduced in price anyway if they retained it, with no big/significant changes other than a plastic shell (downgrade if you ask me). Thats fine if they'd set the price to say $399, but at $549 you would be mad not to lay down another $100 for the 5s.
- pearjuice 13y ago
  Earlier at Apple HQ: "Listen. Let's put one mid tier phone on the market. Make it expensive but not necessarily any better than its predecessor. Then, we also release a phone which is actually an improvement. Our flagship, if you will. The trick is in making the mid tier marginally cheaper than the flagship. This will make the step to the flagship a lot smaller and as the mid tier is basically its predecessor with a few tweaks and a new housing, the average Joe will not even complain. We are getting rid of the old iPhone fives, improving sales for the more expensive variant and it doesn't cost us a thing!"
  - RBerenguel 13y ago
    Actually I've read this (in a more elaborate version) in either Priceless or Influence (maybe even some hints in Scientific Advertising). Which are two very good reads if you are in anything related to sales, money or almost anything else. It's something I've applied many times and works wonders.
    - pearjuice 13y ago
      Actual content would be great!
      - RBerenguel 13y ago
        I didn't have time to grab the actual books. You mean chapter numbers, quotes or the general idea in longer form?
- madeofpalk 13y ago
  > with no big/significant changes other than a plastic shell (downgrade if you ask me) Personal anecdote, but the 5c does feel amazing. A friend replaced his 5s with one and after using it a bit, I wish the 5s was in that case.
- pasbesoin 13y ago
  My thought when I saw the price differential. Over-simplified and off-the-cuff: Many iPhone users seem to personally be on a 2 year cycle. Depreciation circa $300 / year. Many others seem to be on a 3 year cycle, about as far as one can go before starting to really notice their handset lagging to the point of being unacceptable to them. Depreciation $200/year. 5c: Year old tech, in what for many will be "less pretigious" packaging, for $100 off the price of new tech in "more prestigious" packaging. You're immediately "out" $100, or $200, depending upon whether you are on the 3 year or the 2 year cycle. $100/$600, for a savings of 17%. For 17% off, you're taking year old tech in a less prestigious package.
terhechte 13y ago
That, in addition to the fact that the 5C is more or less a iPhone 5 in new clothes. So everybody who did not buy the iPhone 5 because they either didn't like it, or wanted to wait for the next release would probably not buy the 5C either as there's almost no difference.
- auctiontheory 13y ago
  Not quite. 4S owners couldn't affordably buy a 5 because their 2-year contract (on the 4S) wasn't yet paid off during the 5's reign.
chrischen 13y ago
I thought the 5C was meant as a way for parents to justify buying an iPhone for their kids... would make sense since it comes in so many colors... and it's only $50! That's cheaper than a Nintendo DS.
professorTuring 13y ago
Add that the 5C and 5S overlaps in price (more expensive 5C vs cheapest 5S). Add also that most consumers """"doesn't pay"""" the full price up front, instead they will pay the phone over a two years contract... I would move the price band 100$ down for the 5C, just in the middle of the Samsung S3 and S4. Two birds, one shot.
simonh 13y ago
I was thinking that when they launched. There's no way I'd buy a 5C over a 5S, but I was willing to accept that if Apple thought the colourful 5C would sell well then they were probably right. Maybe not. But then if you're going to be wrong about something, this is the kind of wrong you want to be. It's interesting how the headline is spun though. Demand for iPhones isn't at all weak. In fact (as usual) overall it's much higher than analysts predictions. The surprise is that this demand is weighted towards the higher end product.
iMark 13y ago
If they're buying it outright yes, but it's a different matter on contract. There we might be talking about the difference between an initial outlay of $100 and $200. A trivial amount for some, a significant difference for many.

grinich 13y ago

Those sound like lousy friends.

pavlov 13y ago
I suspect that the kind of people who brag to their friends about a new phone probably have pretty lousy friends -- like-minded souls and all that...

noelwelsh 13y ago

Indeed. Furthermore, the type of person who absolutely must get an iPhone minutes after it is released is not the type of person who is price sensitive. 5C buyers are more likely to be upgrading their phone when their existing contract expires etc. I would expect demand for the 5C to rise over time, particularly if the price differential between the 5C and 5S is widened.

fijter 13y ago

Indeed, the 5c is just a bad deal; You get the iPhone 5, a model that would've been reduced in price anyway if they retained it, with no big/significant changes other than a plastic shell (downgrade if you ask me). Thats fine if they'd set the price to say $399, but at $549 you would be mad not to lay down another $100 for the 5s.

pearjuice 13y ago
Earlier at Apple HQ: "Listen. Let's put one mid tier phone on the market. Make it expensive but not necessarily any better than its predecessor. Then, we also release a phone which is actually an improvement. Our flagship, if you will. The trick is in making the mid tier marginally cheaper than the flagship. This will make the step to the flagship a lot smaller and as the mid tier is basically its predecessor with a few tweaks and a new housing, the average Joe will not even complain. We are getting rid of the old iPhone fives, improving sales for the more expensive variant and it doesn't cost us a thing!"
- RBerenguel 13y ago
  Actually I've read this (in a more elaborate version) in either Priceless or Influence (maybe even some hints in Scientific Advertising). Which are two very good reads if you are in anything related to sales, money or almost anything else. It's something I've applied many times and works wonders.
  - pearjuice 13y ago
    Actual content would be great!
    - RBerenguel 13y ago
      I didn't have time to grab the actual books. You mean chapter numbers, quotes or the general idea in longer form?
madeofpalk 13y ago
> with no big/significant changes other than a plastic shell (downgrade if you ask me) Personal anecdote, but the 5c does feel amazing. A friend replaced his 5s with one and after using it a bit, I wish the 5s was in that case.
pasbesoin 13y ago
My thought when I saw the price differential. Over-simplified and off-the-cuff: Many iPhone users seem to personally be on a 2 year cycle. Depreciation circa $300 / year. Many others seem to be on a 3 year cycle, about as far as one can go before starting to really notice their handset lagging to the point of being unacceptable to them. Depreciation $200/year. 5c: Year old tech, in what for many will be "less pretigious" packaging, for $100 off the price of new tech in "more prestigious" packaging. You're immediately "out" $100, or $200, depending upon whether you are on the 3 year or the 2 year cycle. $100/$600, for a savings of 17%. For 17% off, you're taking year old tech in a less prestigious package.

terhechte 13y ago

That, in addition to the fact that the 5C is more or less a iPhone 5 in new clothes. So everybody who did not buy the iPhone 5 because they either didn't like it, or wanted to wait for the next release would probably not buy the 5C either as there's almost no difference.

auctiontheory 13y ago
Not quite. 4S owners couldn't affordably buy a 5 because their 2-year contract (on the 4S) wasn't yet paid off during the 5's reign.

chrischen 13y ago

I thought the 5C was meant as a way for parents to justify buying an iPhone for their kids... would make sense since it comes in so many colors... and it's only $50! That's cheaper than a Nintendo DS.

professorTuring 13y ago

Add that the 5C and 5S overlaps in price (more expensive 5C vs cheapest 5S). Add also that most consumers """"doesn't pay"""" the full price up front, instead they will pay the phone over a two years contract... I would move the price band 100$ down for the 5C, just in the middle of the Samsung S3 and S4. Two birds, one shot.

simonh 13y ago

I was thinking that when they launched. There's no way I'd buy a 5C over a 5S, but I was willing to accept that if Apple thought the colourful 5C would sell well then they were probably right. Maybe not. But then if you're going to be wrong about something, this is the kind of wrong you want to be. It's interesting how the headline is spun though. Demand for iPhones isn't at all weak. In fact (as usual) overall it's much higher than analysts predictions. The surprise is that this demand is weighted towards the higher end product.

iMark 13y ago

If they're buying it outright yes, but it's a different matter on contract. There we might be talking about the difference between an initial outlay of $100 and $200. A trivial amount for some, a significant difference for many.