back to article Apple slams brakes on orders of (not so cheap) plasticky iPhone 5C

Apple has told its hardware makers to reduce iPhone 5C production for the fourth quarter – sparking concerns that demand for the handsets may be weaker than expected. The 5C went on sale in September along with the high-end 5S, with both models hitting 11 markets – including the US and China – at once, for the first time. The …


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  1. Spasch

    No surprise

    It's way too expensive compared to the plastic decked out competition.

    1. andreas koch

      Re: No surprise

      This is where everybody seems to think of it as a tech item. To most iPhone buyers it isn't.

      It is as much about technology as a Rolex watch. The watch is a nice piece of engineering, but it doesn't keep the time better than a £ 7.99 plastic one from the ASDA budget basket. If you now case a Rolex in plastic, would anyone think that it'd sell? I don't think so. It's a 'Veblen Good'.

      So, my strategy (if I was responsible for Apple's sales) would be to go the other way: make it more expensive!

      The next iteration of iPhones would have an iPhone 6S and an iPhone 6E. The 6S could house a new processor, a new camera, more RAM, better display and sell for £700 unsubsidised. The 6E (xclusive) would be a repackaged 5S in a Titanium alloy shell, would come with an exclusively shaped, J.Ive- autographed charger and a lambskin sleeve designed by Vivienne Westwood. It would have an extra 'Assistant' button that, if you press it, connects you to an actual Apple Genius who solves your problem (charged for through your phone bill). It would cost £ 1200.

      And sell.

      1. Yet Another Anonymous coward Silver badge

        Re: No surprise

        Don't those people immediately wrap their iThingy in Burberry cases from the market anyway?

        Just paint over the colored bits with tipex and you have a white iThingy again

      2. Destroy All Monsters Silver badge
        Thumb Up

        Re: No surprise

        Upvoted for "Veblen Good" (though not a fan of Veblen's ideas in general)

      3. Peter 48

        Re: No surprise

        as long as that Apple Genius actually lives up to the name. The ones I have had the delight of experiencing make a shop assistant in Currys look like the font of all technical knowledge in comparison.

        1. John H Woods Silver badge

          Re: No surprise

          <Sheldon>I refuse to contribute to the devaluation of the word genius</Sheldon>

      4. Evgo7311

        Re: No surprise

        This kind of "Premium" phone already exists: it's called the "Vertu". Base model (hand-stitched leather back, casing made of surgical steel) starts at €4.900,- and the Premium model (real sapphire glass, solid gold case, touches made of actual gemstones, Personal Assistant worldwide...) can climb the price range to a whopping €13.000,-. On the technical side, however, it's a total letdown...

        1. andreas koch

          @ Evgo7311 - Re: No surprise

          I'm totally aware of the formerly Nokia-based Vertu. And I must admit that I stole the 'assistant-button' idea from said vendor . . .

          Nevertheless, the Vertu is too expensive for the mass market. It's price is above the just-tolerable-if-I-drop-the-next-2-rent-payments line and will therefore be a real luxury item for really rich people and not for the wannabes that we all love to rip off.

          Sorry Claire, I usually reserve this icon for you, but it's been quiet lately.

    2. Bob Vistakin

      Re: No surprise

      Yet iOS7 is a cheap copy of Android. Clearly, this word "cheap" must be going through some kind of reality distortion field.

      1. Lusty

        Re: No surprise

        "Yet iOS7 is a cheap copy of Android."

        Really? What bits did they copy? Was it stuff like the way the icons shake when you want to move them?

        1. Peter 48

          Re: No surprise

          That isn't really true. iOS7 isn't any more of a copy of Android than a Tonka Truck is of the real thing. iOS7 is little more than a app drawer with a wonkey, vertigo inducing background and a snazzy media player that appears on the lock screen. ITo be a copy of Andoid it would still need to add:

          - widgets or other methods of adding live information for instant display

          - customisation ability beyond changing the wall paper and ringtone and sorting apps into folders.

          - ability to integrate third party apps such as launchers, browsers or keyboards that override the stock ones.

          - ability to sideload apps (even if that introduces a massive potential risk of malware)

          - the ability to browse the file system and save files from any source or program without having to rely on bouncing back and forth through cloud servers and providers.

          - google Now = Siri done right

          - real multitasking including the ability to have two app windows open at the same time (thanks for that Samsung)

          Jailbreaking iOS does get some of these features right, but that isn't really the answer

          Let me know when they actually implement some of these features and then it might be worth taking seriously.

        2. Anonymous Coward
          Anonymous Coward

          Re: No surprise

          Oh and 64bit - oh not Android then...

      2. andreas koch

        @ Bob Vistakin - Re: No surprise

        Android? IOS7? What's that good for? Is it a kind of part of this trinket? Does it need to be there? I shall ask my butler to instruct the head mechanic to send someone to enquire about this . . .

        Do you know how many turns the mainspring of an Omega Constellation has? How many teeth are on the date wheel of a Rolex Oyster Perpetual?

        Who cares? It's a thing that people take care of for me if I pay for a luxury item. I trust that it will be of suitable quality.

        That's how it goes, Bob.

        1. Bob Vistakin

          Re: @ Bob Vistakin - No surprise

          @andreas koch

          Oh how useful selective amnesia can be when you choose to use it. With all this focus on the details of the number of cogs in your posh watch etc, it's almost too easy to forget wer'e dealing with the assholes who claimed to have invented the rounded corner, the sliding bolt (of the kind used in the Pyramids) and more recently the revolving door.

          1. andreas koch

            Bob - Re: @ Bob Vistakin - No surprise

            No need to call anyone a terminal part of your digestive system.

            This is economics, not primary school.

    3. codeusirae

      Re: No surprise

      @Spasch: "It's way too expensive compared to the plastic decked out competition."

      "A mere two weeks after the iPhone 5C launched nationwide, Best Buy is offering the device for only $50 today"

    4. bazza Silver badge

      Re: No surprise

      Well the world's a crazy place.

      People prefer to spend larger sums of money on a flashy metal finished iPhone 5s, then they cover it in cheap plastic and rubber protectors to make it look worse than a 5c. What gives?

      No, I've not bought a 5c either.

      1. andreas koch

        @ bazza - Re: No surprise

        It's all part of a well understood behaviour:

        Handicap Principle

    5. SuccessCase

      Re: No surprise

      "It's way too expensive compared to the plastic decked out competition."

      Clearly, that must be why it is outselling the Samsung S4 then. /s

      1. EvilPixieMan

        Re: No surprise

        WOT - a newer fone outselling an older model of another brand - that's out-FSCKING-rageous!!!!!!!!!!!!!!!!!!!!!!!!!!!

        STOP.PRESS: SAMSUNG S4 Outlsells iPhone 4!!!!

        STOP.PRESS: SUMSUNG S5 to outsell iPhone 5,

        and yes (just so you don't think i'm biased) -

        iSloan 6, may well just outsell S5 (for a few days/weeks ;)

        1. SuccessCase

          Re: No surprise

          @EvilPixieMan Actually the iPhone 5 (older than the S4) also outsold the S4 over an equivalent period of availability, and I should hope the S5 will outsell the iPhone5, but if past performance is a guide, it won't be outselling the 5S. Fortunately for Samsung, though past performance may be a guide, it's applicability is not set in stone. However I think the problem Samsung have is that the S4 along with the good stuff, had some wayward features they threw in to see if they would stick. It's a different philosophy to Apple. But the iPhone 5S has been a solid iterative upgrade with some really useful tech. Samsung should avoid building wayward features on wayward features and should focus on the elements of the feature set that is working best. I'm not convinced however that they have anything groundbreaking planned for the S5. It will be difficult (though not impossible) to match the speed and accuracy of the finger print scanner of the iPhone 5s (Apple purchase Authentec because they were ahead for compact no need to swipe scanner tech). They won't be able to go 64 bit with this next iteration (which, despite initial skepticism, has now been proven to provide a tangible performance boost) because Android won't support it. They will probably be able to match the motion chip and will be able to create a competing low-power bluetooth competitor to Apple's forthcoming iBeacon tech. They will of course improve the camera and can maybe do something really earth shattering there. However I suspect they will just up pixel count and aim to do slower slow mo than 120fps gives. They can prove me wrong of course, by doing something totally new. We shall see.

    6. SuccessCase

      Re: No surprise

      Turns out the story is wrong anyway:

      1. Anonymous Coward
        Anonymous Coward

        Re: No surprise

        Money talks./

    7. Anonymous Coward
      Anonymous Coward

      Re: No surprise

      It's probably the same price they would have dropped the '5' to when the '5s' was released. Apple keep 1-2 older handsets as cheaper options and the 5c is basically just a 5 in a plastic casing. So the pricing seems about what you would expect if you view it as a 5. It will also appeal to some additional markets and for Apple it's clever - people who want the aluminium case will pay a bit more for a 5s (where they may have bought a 5) and people who want more colour now have a choice.

  2. Michael Thibault


    That is all.

  3. Anonymous Coward
    Anonymous Coward

    two thirds

    Should that be a Pegatron-rebrander then?

  4. Colin Millar

    Shouldn't be hard for apple to break into the lower end of the market

    They would have to upspec their products a bit but that wouldn't be very difficult.

    1. Anonymous Coward
      Anonymous Coward

      Re: Shouldn't be hard for apple to break into the lower end of the market

      As I understand it, the iPhone 5S has faster graphics than anything else on the market, and a fast CPU (though I doubt being 64 bit has anything to do with it...more likely to be something like better memory bandwidth). The small display allows it to have tolerable battery life with a small body. It is indeed a very advanced product.

      The competition has a number of additional features which are useful to some people but not all. Obviously a large number of people don't find them useful. Adding two large seats in the back, a towbar and a rack of Hella lights on the roof would not in fact "upspec" a Porsche 911.

      I don't have an iPhone because it doesn't meet my needs, but I don't feel the need to be sarcastic about it.

      1. Colin Millar

        Re: Shouldn't be hard for apple to break into the lower end of the market

        Was your sense of humour surgically removed? or did you just stick your fingers down your throat till you sicked it up?

        1. JDX Gold badge

          Re: Shouldn't be hard for apple to break into the lower end of the market

          If you think that stating something that is flat-out false counts as a joke, maybe you shouldn't be critiquing others' sense of humour.

        2. This post has been deleted by its author

        3. Anonymous Coward

          Re: Shouldn't be hard for apple to break into the lower end of the market

          Now I understand the saying "A fat boy is a happy boy."

          I certainly have not sicked mine up, in fact, here comes some more delicious cake.. nom nom nom.

      2. Jabberwolf

        Re: Shouldn't be hard for apple to break into the lower end of the market

        BWHAHAHAHAAA - its a Porsche now?

        Kind of pathetic the excuses and comparisons Apple users try to make to placate their egos... with their absence of utility. But lets take that analogy - lets pretend its a Porsche. But its one that you can drive anywhere and they promise in 1 or 2 years they'll build a track you can drive it on. But by that time, it will be a Porsche from the 1960s and outdated with technology that's newer, better, and usable. But hey, you can always claim it as a collectors item... ?!?

      3. PhilipJ

        Re: Shouldn't be hard for apple to break into the lower end of the market

        what's even more interesting, is the fact that if you replace the Porsche 911 frame with plastic, you get a Fiat Panda.

      4. Peter 48

        Re: Shouldn't be hard for apple to break into the lower end of the market

        the iphone 5S has one of the most benchmark optimised processors on the market, but it is still outperformed by a significant margin in some benchmarks that test the whole system by processors like the Snapdragon 800. 3D Mark in particular is a good example. Here the Snapdragon has about a 30-50% margin over the A7.

  5. djstardust

    See .....

    Not even Apple fanpeople are stupid enough to be ripped off to that degree. The margin on those phones must be really stupidly high. ..... and they look like shite too!

    1. JDX Gold badge

      Re: See .....

      Why do you think it costs significantly less to make than the 5[S]?

    2. Anonymous Coward
      Anonymous Coward

      Re: See .....

      You all should tone it down a few notches. Until a few weeks ago, the 32GB iPhone 5 was $299, which I could not really afford. Now I can get a 32GB iPhone 5c for $199. Anodized brushed aluminum back or metal lined plastic back? Who cares! They are still better built than the all poly-carbonate (including the screen) phones that some favor. I don't need the fastest, most feature laden phone on the planet but I do need a bit more storage and I appreciate a well built device.

      Bottom line is that $100 does make a difference to some of us.

      1. Peter 48

        Re: See .....

        if you are spending $199 on contract, why would you waste it on an outdated piece of tech like the 5c though? You would be much better off with the LG G2 or save yourself even more money and get a Lumia 925 for $0.99.

      2. Piro Silver badge

        Re: See .....

        If the money mattered to you, you:

        A) wouldn't be buying a brand new gadget

        B) wouldn't be buying an new apple device, which are all high priced compared to functional equivalents

  6. messele

    No mention of increased production of the 5S then?

    Nah, of course not.

    1. Ryan Clark

      Re: No mention of increased production of the 5S then?

      It is in the article

      Foxconn said that as well as cutting orders for the 5C, Cupertino said it would need more of the 5S models for the fourth quarter.

      1. JDX Gold badge

        Re: No mention of increased production of the 5S then?

        Well obviously if more people are buying 5S rather than 5C, a reporter would simply say "5C selling below expectations". Facts just get in the way of the story.

    2. Lusty

      Re: No mention of increased production of the 5S then?

      I'm wondering whether the actual communication went more like:

      "We know all your factories are flat out coping with demand right now so in order to increase production of our flagship model would you please reduce production of our other models?"

      Seems like good business sense to me?

  7. Anonymous Coward
    Anonymous Coward

    explains why investors are dumping Apple shares

    Apple have no answer for emerging markets, where equally capable but quarter of the price Android handsets are king.

    1. Anonymous Coward
      Anonymous Coward

      Re: Android handsets are king...


    2. Don Jefe

      Re: explains why investors are dumping Apple shares

      You know who else doesn't have an answer for emerging markets? Pet food manufacturers. Just like having pets (not working animals) is a luxury, so is a smartphone.

      The term 'emerging markets' is product specific, it does not mean that markets for everything are developing in that place or that a given market ever will develop there for that product.

      1. Alan Brown Silver badge

        Re: explains why investors are dumping Apple shares

        If you're in an "emerging market" try buying kitty litter anywhere. You just can't get it.

        Petfood is readily obtainable.

        It may be that this is the true metric of a developed market.

    3. Roland6 Silver badge

      Re: explains why investors are dumping Apple shares

      >Apple have no answer for emerging markets

      Neither has Rolls Royce, Jaguar, Porsche, Mercedes et al - hasn't stopped them selling lots to emerging markets and developing countries...

  8. Anonymous Coward
    Anonymous Coward

    Either nobody wants a pikey iphone or it isn't pikey enough price-wise

    1. Captain Scarlet Silver badge
      Paris Hilton

      Or like me I watched the advert and so this phone is purely for freaks or people with high opinions of themselves.

  9. Rogue Jedi

    the 5S, it's cheaper, but not really cheap enough to be a budget model"

    The 5c is high end

    I would define budget a budget smartphone as costing significantly less than £100, with mid range as £100-£300, the iPhone 5c costing more than £400 is still firmly in high end terratory.

    1. Cliff

      Re: the 5S, it's cheaper, but not really cheap enough to be a budget model"

      It's a perfectly decent phone I'm sure, but it looks cheap. From a company where branding is central to their business value, it looks a bit pony.

  10. Fenton

    Want an apple but not the 5c or the 5s

    Upgrade time from my 4s. I've invested in various apps so don't want to change OS.

    I have two main requirements however.

    4G connectivity and a larger screen. The screen on the 5 is just not big enough (but the Galaxy 4 is just too big).

    I do like the look of the 5S, but don't want to pay for all the new stuff that I don't need.

    I've thought about getting a SIM only deal and a second hand/referb 5 and selling the 4S, but contracts on a new 5c come out at the same price.

    I get the feeling they have deliberately gone for kiddie/girlie colours on the 5C to ensure people not into those colours go for the 5S.

    1. I ain't Spartacus Gold badge

      Re: Want an apple but not the 5c or the 5s

      What's the financial value of the apps you've invested in?

      You can now get a really nice Android (Nexus 4) or Windows Phone (Nokia 820) for £200-£250. That price difference buys quite a few replacement apps. Although there's a greater likelihood that the apps you want are on Android - but I've heard the Windows Marketplace is much improved.

      I think Apple are now over-priced. They weren't that much before, as the top-end phones were a lot better than the budget end, and I thought the iPads were by far the best tablets until about a year ago (and so worth the premium). But the competition has hotted up, and you can often get very good budget models. Also, unlike Apple, last year's top end is now down to £200-£300. My phone is currently what work gives me, my next tablet is unlikely to be an iPad. I've probably only spent around £50 on apps, and can get an equally good tablet for £200 less than the 64GB iPad I had to get, as there's no memory card slot.

      It then comes down to OS preference. In a phone, I like simplicity and would go back to Windows. In a tablet, I rather fancy the Samsung Galaxy Note 10.

    2. JDX Gold badge

      Re: Want an apple but not the 5c or the 5s

      You can still get iPhone 5 on contract brand new, can't you? They were still doing iPhone 4 (non-s) when the 5 was out.

      1. Peter 39

        Re: Want an apple but not the 5c or the 5s

        No. The iPhone 5 is done. But you can still get 4s as the low-price entry (typically free on contract).

        The iPhone 5c is virtually identical, spec-wise, to iPhone 5. What Apple did was take the same innards and use a plastic case that's less expensive to make. .

    3. Philip Lewis

      Re: Want an apple but not the 5c or the 5s


      It looks pretty good actually, not at all "cheap".

      1. AlanC

        Re: Want an apple but not the 5c or the 5s

        ...and in photos the white one looks quite reminiscent of the 3GS, which no-one said looked cheap and nasty at the time.

        1. At0micAndy

          Re: Want an apple but not the 5c or the 5s

          i still have my white 3Gs, still lasts a day on charge and has all my toons in it.

          Thank you.

  11. knarf

    $100 cheaper.....why bother

    Over a 2 year contract that would be $4.10 monthly. Resell costs will also be a lot lower as well.

  12. Ally 1

    Shows how much analysts know. They have been crying out for a cheaper iphone for years.

    1. Phil O'Sophical Silver badge

      No, they've been crying out for a cheap iPhone. cheaper doesn't cut it.

      The 5C is like a reduced-price Rolex, not cheap enough for the people who don't care about image, too cheap for those that do.

      1. sabroni Silver badge


        Out manouvered by Phil's quick typing. And he knows how to do things in bold.


      2. Paul Shirley

        Phil O'Sophical: exactly.

        Apple need to decide if they *need* to have midrange and even budget products and then actually build them. A real one not just slap a sale sticker on lasts years spec and put it in a cheaper casing.

        I think we can assume Apple don't *want* to do budget or midrange though and I'm nearly as convinced they'd just cannibalise more of their own high end sales than they gained in new customers.

        If Jobs was still around they wouldn't be pandering to the markets or stockholders like this. Perhaps Jobs would have been tempted to build something so cheap it destroyed everyone else's market, his MAD moment against Android but the half assed 5C would never exist.

        1. JDX Gold badge

          Yeah, I don't think Apple want a slice of the budget market really. OK they have the Mac Mini and the iPod nano but both seem like nobody at Apple really cares about them.

          You don't see Rolex selling a £50 watch or Ferrari a £30k car, premium brands retain their value by being premium.

          1. Persona non grata

            "You don't see Rolex selling a £50 watch or Ferrari a £30k car, premium brands retain their value by being premium."

            Yes - but you also don't see those things mass produced in China using sweatshop labour.

            Unlike the Apple branded product. Sense of perspective wouldn't go astray JDX.

          2. Darren Barratt

            "You don't see Rolex selling a £50 watch"

            Lies, I got one just the other day off a Rolex rep selling from the boot of his car.

          3. Anonymous Coward

            "Yeah, I don't think Apple want a slice of the budget market really. OK they have the Mac Mini and the iPod nano but both seem like nobody at Apple really cares about them.

            You don't see Rolex selling a £50 watch or Ferrari a £30k car, premium brands retain their value by being premium."

            Stop fooling yourself mate!

            No one else (other than those of the same ilk) agrees that Apple is a premiun brand. If it were so premium why have all the pikeys and chavs got one? FFS they hired someone from burbery! CHAV CHAV CHAV spray painted all over it!

        2. Anonymous Coward
          Anonymous Coward

          Do what you do best

          Not an Apple fan but I agree. I think they produced the 5c to pander to the stock analysts who think they should be competing on the bottom end. This was never Apples vision. I don't think they need to compete on market share since they seem to be making gobs of money selling the Apple experience. Producing an Iphone to meet android bottom fisher specs would only dilute the brand they worked so hard to compete and would also probably be a crappy phone.

    2. sabroni Silver badge

      The analysts probably didn't mean "just a tiny bit cheaper so it's still in the top price bracket", more likely "to compete with Android phones at around the £150-£250 mark". Of course that could ruin Apple's cachet among the conspicuous consumer crowd....

    3. Don Jefe

      As a rule of thumb, anytime analysts agree that something should be done, it means that it absolutely, under no circumstances should be done.

      Analysts are the worst. They know nothing about how any given industry actually functions. If they knew what they were talking about they'd be able to make a lot more money by participating in the industry, instead of pontificating on it.

      Analysts are an extension of brand marketing strategies and nothing more. Anything they say should be treated with the same amount of skeptisim you apply to any marketing efforts. Basically ignore it all and make decisions on your own and/or weight them with opinions of others whom you trust. You'd have equally good luck asking a random hobo to assess an industry plus you wouldn't have to dress up or be mindful of your language for the privilege.

  13. Philip Lewis

    "... indicating that the more expensive phone is outselling the slightly cheaper model."

    It says no such fucking thing! FAIL, FAIL.

    It says that demand/orders are exceeding the initial supply chain orders. It says, absolutely fucking nothing about the 5C.

    Journalist = moron.

    1. Don Jefe

      You do understand this article is addressing future manufacturing capacity right? Maybe you don't.

      When you manufacture anything at scale you forecast your future supply chain capacity requirements based on present product velocity. The issuance of near term guidance with a decrease in anticipated 5C unit production means that, based on present demand, Apple overestimated the product's popularity and does not see the potential for increased rates of adoption going forward. Therefore they are scaling back output of the 5C and increasing production of the 5S because they are seeing increasing demand for it. That's how manufacturing works...

  14. Anonymous Coward
    Anonymous Coward

    If people want to pay too much money for a shitty plastic phone they buy a Samdung phone.

    1. dougal83

      "If people want to pay too much money for a shitty plastic phone they buy a Samdung phone."

      Fail troll is fail. Was that a typo of "Samsung" or some form of wit?

    2. Anonymous Coward
      Anonymous Coward

      From my experience screens on 'premium' metal phones break so much more easily than their plastic counterparts.

  15. Donald Becker

    People are still missing the bigger picture

    Apple doesn't need a budget phone, unless it's actually much cheaper.

    In the US, buying the flagship iPhone will cost you about $3K over the life of the contract. Buying the cheap version will cost $2.9K. Producing a real budget model drops that cost down to perhaps $2.5K.

    People aren't quite that rational. Up-front cost weighs more heavily than long-term obligations. But over time they are much more rational than marketing people seem to believe.

  16. Frankee Llonnygog

    Tim Cook, From Apple's fiscal Q1 2013 Earnings Call

    I know there has been lots of rumors about order cuts and so forth and so let me just take a moment to make a comment on these. I don't want to comment on any particular rumor because I would spend my life doing that but I would suggest it's good to question the accuracy of any kind of rumor about build plans and also stress that even if a particular data point were factual it would be impossible to accurately interpret the data point as to what it meant for our overall business because the supply chain is very complex and we obviously have multiple sources for things, yields might vary, supply performance can vary. The beginning inventory positions can vary, I mean there is just an inordinate long list of things that would make any single data point not a great proxy for what's going on.

    1. Anonymous Coward
      Anonymous Coward

      Re: Tim Cook, From Apple's fiscal Q1 2013 Earnings Call

      100% buls**t. You don't cut production going into Christmas if you are selling tons of product

  17. Howard Hanek

    A REAL Bargain?

    $549 for an unlocked 16GB 5C? A REAL bargain? Nuts.

  18. Anonymous Coward
    Anonymous Coward

    apple died long ago dumbs

    The 5C was a desperate move for money and the last straw for apple, apple is dead and ive been telling you stupids for awhile now but you just don't listen, Samsung & LG took over already jump on the band wagon before your apple junk is worth 0.00 lol. Fk all you who want to reply and debate me. hihihihihi. I win!

  19. altered3

    Two things would have made the 5c sell...

    First, it needed one or two features better than the preceding 5, such as the same improved camera as the 5s, without the 64-bit processor and fingerprint reader. Instead everybody sees it as "last year's model in a cheap plastic case," because that's exactly what it is.

    Second, why the femme colors -- other than possibly the white, there are no colors I would remotely consider. The 5s colors are all gender neutral, but 5c looks totally aimed at women and kids. So there went 50% of their potential buyers.

  20. codeusirae

    Good business strategy ..

    The 5C is aimed at the people who can't afford the 5S, keeps them from jumping ship and buying an Android or the other models, good business strategy ...

    1. Hans 1

      Re: Good business strategy ..

      They need to price 5C half of the price of a 5S, max, for it to sell ... I think they thought they wanted to hike up the price of the 5S and wanted a phone that would match the price-point of the previous high-end models ... Good news for Apple, ppl are buying the more expensive model - exactly what they want ... Now that is good business sense ... squeeze those dollars out of us.

      Thing is, the business tactic worked better than anticipated, so now they have to shift manufacturing capability from 5C to 5S - better situation than expected.

  21. @bloggerna

    I am not surprised that this has happened. Thin about it, most people go out to buy their phones with a contract. I have met very little people who actually bought the phone outright. So even though iphone 5c was cheaper by $100, it didnt give the incentive for people to buy it because they would still be stuck in 2 year contracts. I would rather pay small amounts monthly and get an iphone 5s rather a iphone 5c. Now if on the other hand, the 5c was selling for $100, I would buy it in a heartbeat but that isnt going to happen.

    See you later iphone 5c

    1. amanfromearth

      .. "very little people"

      Like leprechauns?

    2. Hans 1

      @300 it would sell like hot buns ...

  22. michaelward82

    Logic failure

    Component supply cannot be proven as indicatively linked to sales or demand, unless you have intimate and current knowledge of the supply chain in question. Leave your fallacious arguments at the door people.

    That is all.

  23. Loyal Commenter

    Maybe it's the advert?

    After all, it is a wonderful display of a string of utter douchebags answering their brightly coloured plastic phones in a loud and obnoxious manner. It doesn't sell it to me, but maybe I'm not the target market. The problem, it seems, rather pleasingly, is that the target market of total fuckwits is much smaller than Apple anticipated.

  24. Michael 5

    So many are so wrong

    I have been reading through the comments... and I have to say that so many of you are completely misguided.

    Concerning price: I have seen a number of people mention price. But you have to look at the underlying dynamics that make up the price. A number of phones are literally being given away. There is a reason why Samsung and Apple are the only ones making recognisable profits in the Smartphone market. Just like in the PC market, too many companies have fallen victim to the price wars mentality.

    Consider this: If Phone-A is sold at a 5% profit while Phone-B is sold at a 35% profit, is it safe to say that Phone-B is over priced and should be priced as Phone-A? I contend that its unsafe to expect that all companies should sell their products at razor margins. This is not necessarily good for the economy and not good for the company.

    While I want a good deal for the amount of money I put down, I also want the company who I purchase into to be around for the long haul. A company who does not maintain a certain level of net profit will not survive.

    Now in direct relations to this story, there are a number of considerations to take in.

    If the iPhone 5S is selling better then expected, while the iPhone 5C is selling better then the leading competitor then how is that a failure?

    But the most important point that can be brought up is that this article is based upon speculation and rumours that have been proven to be insanely inaccurate historically.

    1. Loyal Commenter

      Re: So many are so wrong

      Absolutely, I mean look at poor little struggling Apple, only the 22nd richest company on the entire planet. How could they possibly afford to make less obscene profits?

  25. Anonymous Coward
    Anonymous Coward

    So the 5c is basically a 5 - so what. It's still selling great (for essentially an older model).

  26. Henry Wertz 1 Gold badge

    Not $50

    Regarding theverge's report.. BB is not selling 5cs for $50, it's incorrect in two aspects:

    1) It's not $50, it's $100 then you get a $50 gift card... which must be spent on other tat at Best Buy.

    2) ***2 YEAR CONTRACT***!!!

    Phone companies will give away almost any phone to get you hooked into one of those contracts. AT&T and VZW (the big 2) have hideously expensive data plans, which is mandatory (you cannot elect to use wifi only and go with low or no data with any smartphone or iphone.) The 5c *started* at $99 with 2 year contract.

    You are probably unaware of the situation here in the US, but these mandatory data plans start at $60 a month on AT&T (450 minutes, NO TEXTS, and.. I wish I were joking... 300MB data. or 3GB data for $70 total instead.) Add texts and you are at $90 already. VZW's new plans are even worse, unlimited text, talk (no option for less!) and 2GB is $100. You want a better price? Sprint's somewhat better, T-Mobile is WAY better, but T-mo at least no longer subsidizes your phone.. .although you can elect to pay one off over time instead of pay up front.

    AT&T and VZW REALLY want people on these, so you can get all sorts of Android phones free (*with 2 year contract) and IPhone 5s is under $199 (*on 2 year contract.)

    1. I ain't Spartacus Gold badge

      Re: Not $50

      Ouch! Thanks for that. I knew US tariffs were higher than in Blighty, didn't realise it was that bad.

      In comparison £34 (ex VAT) per month gets you a 2 year contract, new iPhone or Galaxy 4 for nothing up-front, 1 GB 4G data and unlimited calls and texts. And that's dropping slightly as all the players are now doing 4G.

      I believe 3 will give you unlimited calls, texts and bandwidth, including tethering and top-end phone for £35 per month including VAT. And when they go 4G in a month's time, they upgrade all their users for free. You can get 1/2 GB of data, some calls, many texts and a cheap phone for £15 per month (inc VAT) with them.

      Do you pay sales tax on the contracts, or only the phone itself?

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