4 ms·

The move seems so logical by Apple, although I've yet to really see any journalist comprehend it. Apple has lowered their cost to produce a product they were go

by rebel 13y ago

The move seems so logical by Apple, although I've yet to really see any journalist comprehend it. Apple has lowered their cost to produce a product they were going to offer anyway (they always sell last years model at the same discount), while at the same time, visually differentiating it from the high end product. One would have to assume this has pushed more purchasers up-market to the newer device, while also attracting new customers who don't care about specs and are more concerned about the colors/fun factor. So Apple has not only gained a higher profit margin, they presumably have improved their device yield by making a simpler phone to produce. On top of all that, they have a product to appeal to a different segment of the market. The phone also allowed them to have something on the shelves while the 5s was sold out. Everything about it seems like an outstanding success to me.

marze 13y ago
Very well put. It will be the first or second best selling phone in history and will have great margins for Apple. From their point of view, an excellent move. The best indicator of the excellence of the Apple phone products, in my view, is that the iPhone 4 is still being sold. It came out 3 1/2 years ago, and is still good enough to be sold today. Are any competing smart phones from mid-2010 still being sold today?
- objclxt 13y ago
  I don't think Apple are still selling the iPhone 4...perhaps there is some inventory that's still available in certain markets, but if you go to an Apple Store it's the 4S, 5C, and 5S.
  - marze 13y ago
    Well, it appears to be for sale here: http://www.virginmobileusa.com/shop/cell-phones/iPhone4-8GB-phone/features/ http://www.virginmobileusa.com/shop/cell-phones/iPhone4-8GB-... And, I've heard it remains for sale in China.
    - robin_reala 13y ago
      Yep, still for sale on the Chinese Apple store: http://store.apple.com/cn/buy-iphone/iphone http://store.apple.com/cn/buy-iphone/iphone
shrikant 13y ago
The 5c seems to be such a basic case of decoy marketing, that it's astounding I haven't seen it being mentioned more often. http://www.dmn3.com/dmn3-blog/decoy-marketing-it-works-and-heres-why http://www.dmn3.com/dmn3-blog/decoy-marketing-it-works-and-h...
- daegloe 13y ago
  A technique used quite effectively when selling bundle tiers (e.g., platinum package vs. gold package vs. silver package, etc). Amazing that both Wall St and the general press have failed to recognize the 5c pricing for what it is: a brilliant decoy driving sales of the higher margin 5s.
  - brymaster 13y ago
    They should be applauded for getting one over on consumers.
    - daegloe 13y ago
      Let's not overlook the fact that Apple is offering consumers a genuine, lower priced alternative, albeit one that appeals to a subset of the market.
      - InclinedPlane 13y ago
        It's not a "genuine, lower priced alternative", it's about 15% cheaper as an unsubsidized phone. As a subsidized phone it's maybe around 9% cheaper.
        mhw 13y ago
        So if it's between 9% and 15% cheaper (your figures), what word would you use to complete the sentence "genuine, _______ priced alternative"? Higher? Same?
  - makomk 13y ago
Cthulhu_ 13y ago
Your points are valid, but I do think Apple's taking a big risk there; especially in the last couple of years, the competition has fiercely increased, and I don't think the primary choice is "Latest model or latest -1" with a lot of consumers, but "iPhone or Android". Especially given how high-end, sexy-looking Android phones can easily dive under the price of the cheap-looking 5C.
- yaeger 13y ago
  I'd like to point out that the competition would have to offer a whole lot more than the current device people are using before they would consider a switch. Isn't that why WinPhone has yet to actually gain any traction? The market of smartphones is pretty saturated. People by large who want to use smarthones compared to "dumbphones" most likely already use one. Especially with Apple and them being first in the app store market, people who have been with them since the beginning have invested a lot on the eco system. And if you have bought so many apps and devices over the years, as time moves on, it would get more difficult to just up and leave for another eco system. Which, incidentally is also why I think the design of the iPhone has not changed that much since the 4. I think starting form the first iPhone to the 4 they have really found a great design. And judging by the sales of the 4 and up, a lot of people feel the same. Personally, I don't want the next iPhone to feature a radically different design just for the sake of change. I saw what change for the sake of change gets us with Windows8. If people want to switch phones on a whim just cause there is a "new sexy device" coming out, then Android has been their first choice for a long time now. Most iPhone users I know chose it because a) No tinkering needed, b) Always had a smooth Interface, c) A lot of apps available and d)A nice clean phone design. I don't think Apple runs a risk just cause they don't suddenly convert their entire approach to mimick Android companies and releasing a plethora of different phone designs and specs. iPhone is iPhone and the variety we have now is sufficient. It would have to happen a lot before I would consider a switch of eco systems. But that would be more on the side of "what apple might do that I don't like" and not on the "what other android companies do that I might like". So, the "competition" increasing, to me, is only of interest for people who just now are in the market for their first smartphone. Or people who exclusively only get free apps. For those, the choice of eco system is entirely free to change on a whim. For me who has invested several hundred dollars in apps over the years? Not so much.

by rebel 13y ago

marze 13y ago

Very well put. It will be the first or second best selling phone in history and will have great margins for Apple. From their point of view, an excellent move. The best indicator of the excellence of the Apple phone products, in my view, is that the iPhone 4 is still being sold. It came out 3 1/2 years ago, and is still good enough to be sold today. Are any competing smart phones from mid-2010 still being sold today?

objclxt 13y ago
I don't think Apple are still selling the iPhone 4...perhaps there is some inventory that's still available in certain markets, but if you go to an Apple Store it's the 4S, 5C, and 5S.
- marze 13y ago
  Well, it appears to be for sale here: http://www.virginmobileusa.com/shop/cell-phones/iPhone4-8GB-phone/features/ http://www.virginmobileusa.com/shop/cell-phones/iPhone4-8GB-... And, I've heard it remains for sale in China.
  - robin_reala 13y ago
    Yep, still for sale on the Chinese Apple store: http://store.apple.com/cn/buy-iphone/iphone http://store.apple.com/cn/buy-iphone/iphone

shrikant 13y ago

The 5c seems to be such a basic case of decoy marketing, that it's astounding I haven't seen it being mentioned more often. http://www.dmn3.com/dmn3-blog/decoy-marketing-it-works-and-heres-why http://www.dmn3.com/dmn3-blog/decoy-marketing-it-works-and-h...

daegloe 13y ago
A technique used quite effectively when selling bundle tiers (e.g., platinum package vs. gold package vs. silver package, etc). Amazing that both Wall St and the general press have failed to recognize the 5c pricing for what it is: a brilliant decoy driving sales of the higher margin 5s.
- brymaster 13y ago
  They should be applauded for getting one over on consumers.
  - daegloe 13y ago
    Let's not overlook the fact that Apple is offering consumers a genuine, lower priced alternative, albeit one that appeals to a subset of the market.
    - InclinedPlane 13y ago
      It's not a "genuine, lower priced alternative", it's about 15% cheaper as an unsubsidized phone. As a subsidized phone it's maybe around 9% cheaper.
      - mhw 13y ago
        So if it's between 9% and 15% cheaper (your figures), what word would you use to complete the sentence "genuine, _______ priced alternative"? Higher? Same?
- makomk 13y ago

Cthulhu_ 13y ago

Your points are valid, but I do think Apple's taking a big risk there; especially in the last couple of years, the competition has fiercely increased, and I don't think the primary choice is "Latest model or latest -1" with a lot of consumers, but "iPhone or Android". Especially given how high-end, sexy-looking Android phones can easily dive under the price of the cheap-looking 5C.

yaeger 13y ago
I'd like to point out that the competition would have to offer a whole lot more than the current device people are using before they would consider a switch. Isn't that why WinPhone has yet to actually gain any traction? The market of smartphones is pretty saturated. People by large who want to use smarthones compared to "dumbphones" most likely already use one. Especially with Apple and them being first in the app store market, people who have been with them since the beginning have invested a lot on the eco system. And if you have bought so many apps and devices over the years, as time moves on, it would get more difficult to just up and leave for another eco system. Which, incidentally is also why I think the design of the iPhone has not changed that much since the 4. I think starting form the first iPhone to the 4 they have really found a great design. And judging by the sales of the 4 and up, a lot of people feel the same. Personally, I don't want the next iPhone to feature a radically different design just for the sake of change. I saw what change for the sake of change gets us with Windows8. If people want to switch phones on a whim just cause there is a "new sexy device" coming out, then Android has been their first choice for a long time now. Most iPhone users I know chose it because a) No tinkering needed, b) Always had a smooth Interface, c) A lot of apps available and d)A nice clean phone design. I don't think Apple runs a risk just cause they don't suddenly convert their entire approach to mimick Android companies and releasing a plethora of different phone designs and specs. iPhone is iPhone and the variety we have now is sufficient. It would have to happen a lot before I would consider a switch of eco systems. But that would be more on the side of "what apple might do that I don't like" and not on the "what other android companies do that I might like". So, the "competition" increasing, to me, is only of interest for people who just now are in the market for their first smartphone. Or people who exclusively only get free apps. For those, the choice of eco system is entirely free to change on a whim. For me who has invested several hundred dollars in apps over the years? Not so much.