“In some respects, the iPhone 5C doesn’t represent much of a strategy shift for Apple (AAPL, Fortune 500). The company has sold its year-old iPhone for $100 less than its new iPhone for several years. This is also the third year in which Apple has sold its two-year old iPhone with a $200 mark-down. So the iPhone 5C is really just taking the place of the year-old iPhone 5 in Apple’s lineup,” Covert writes. “What’s different is the sizable marketing blitz Apple is putting on for the iPhone 5C — a campaign that is typically reserved for Apple’s top-tier iPhone (now the iPhone 5S). Welcome to Apple’s solution to its sinking profit margins.”
Covert writes, “Simply switching the iPhone’s casing from aluminum and glass to plastic could reduce Apple’s manufacturing costs by a stunning $17 dollars per phone, according to Morgan Stanley analyst Jasmine Lu. But the iPhone 5C is by no means a cheaply made smartphone. Hawking budget products has never been part of Apple’s strategy, not even during its run of irrelevance in the 1990s. And having built itself back up on products that range in quality between the upper end of mid-range and premium, Apple has no reason to start now.”
Read more in the full article here.
MacDailyNews Take: Those who call for a cheap iPhone do not understand Apple or even basic branding.
The Story of the Cadillac Cimarron
The most important part of any luxury brand is its image and one bad model can ruin it. In the early 1980s, Cadillac joined other luxury brands in trying to attract more entry-level buyers with a smaller, more fuel-efficient car. Instead of coming out with a truly new product, GM added the Cadillac crest to what was, in all important respects, a Chevrolet Cavalier. It also added thousands to the price tag.
In all, it was neither a good Cadillac nor a good value. Even GM executives will readily admit today that this was a really bad idea. – CNNMoney
Apple doesn’t want, doesn’t need, and doesn’t care about a cheap iPhone – September 11, 2013
Doug Kass: Apple is making a strategic mistake with iPhone 5c ‘dud’ – September 11, 2013
Apple opts for profit over market share with not-so-cheap iPhone 5c – September 11, 2013
The true objective of Apple’s new iPhone 5c – September 10, 2013
Why would anyone buy an iPhone 5c instead of an iPhone 5s? – September 10, 2013Apple reveals flagship iPhone 5s with Touch ID, the world’s first and only 64-bit smartphone – September 10, 2013
Apple unveils iPhone 5C; pre-order September 13th, on sale September 20th – September 10, 2013
Apple to release iOS 7 with completely redesigned user interface on September 18 – September 10, 2013