Apple’s cheaper iPhone 5c targets LTE growth in international markets

“In a somewhat surprising move, Apple rolled out a cheaper version of the iPhone 5C in certain European and Asian markets Tuesday,” Trefis writes for Seeking Alpha. “The new smartphone is not very different from the existing iPhone 5C models as far as specifications go, but at 8GB, it has half the memory capacity of the previous entry-level 16GB variant. This could be a restricting factor for many smartphone users given the ever-rising memory requirements for downloading new apps and movies.”

“The device is therefore likely to be positioned as an on-ramp for first-time smartphone buyers looking to enter the iOS ecosystem. That the 8GB variant has been launched only in the U.K., France, Germany, Australia and China shows that Apple is looking to target those markets where 4G LTE is either being introduced or is only in the initial stages of adoption,” Trefis writes. :This is probably why the model hasn’t been launched in the U.S., where LTE is a far more established 4G standard.”

“However, instead of discontinuing the 8GB iPhone 4S, Apple has chosen to position the new device between the 8GB 4S and the 16GB 5C in terms of pricing,” Trefis writes. “We believe that this limits the potential number of users that will find the new smartphone appropriate value-for-money given the horde of price-competitive Android options available in the market at similar price points. ”

Read more in the full article here.

Related articles:
Apple’s 8GB iPhone 5c offers just 2.96GB less storage than Samsung’s ’16GB’ flagship Galaxy S5 – March 19, 2014
Apple releases 8GB iPhone 5c worldwide – March 18, 2014


    1. This. I’ve seen three people in the last two days with 5C’s, two school kids, and one a young female temp at work. These are clearly the demographic that Apple are aiming for, people who message their friends, use social media, and stream music, or download low bitrate pop tunes, and use Instagram to take selfies.

      1. The article is talking about foreign markets, where millions of homes do not have personal computers and so children in the Orient began using feature phones as a substitute.

        The texting meme originated overseas at a time when the West was embracing the Email concept.

        In the world view, Asians are “space” conscious and they tend to reduce every experience to its essence, transistor radios, micro apartments etc., whereas Americans have a tendency to pursue the bigger is better meme.

        Asians, and the Third world in general, embraces streaming content and downplays storage and my sense is, Apple is providing that market with a fast, yet affordable “computer”.

  1. No way that’s going to happen. Cook cheapened the iPhone by first making it plastic and then offering an inadequate 8GB of storage to rip off customers. It reflects a visionless CEO who can only think in terms of manufacturing efficiency. Ive is complicit in this too because he designed the cheap looking iPhone 5C in pastel colors and tried to pull in the teen demographic by designing the kindergarten inspired iOS 7.

    1. Actually, it reflects Apple’s willingness to adjust to market conditions and usage patterns. It’s been made clear that people who want a shiny new Apple product WILL pay for it and go for the high end device. Too many morons think that the sales of the 5c are low and therefor conclude that it is a flop. That fact is, the “lower” sales numbers of the 5c have directly translated into higher sales of the 5s. The 5c is selling the same numbers as the 4s did after the 5 came out, so it’s not a flop, it’s just not a wildly successful device that most expect ALL “new” Apple products to be.

      Where Apple may have misjudged is in the type of user that would want to buy their “day old” models, which is what the 5c is, just in a new plastic case (and new cellular radio). It could just be that a majority of the people aren’t using these iPhones to download a lot of apps and they are more or less casual users, making more use of services; Twitter, iMessage, FaceBook, Safari, Pandora, You Tube, etc. They don’t need the space, so why make them pay for it. Drop the storage and the price and focus on those specific users.

      Why is that so hard to understand?

  2. It will be targeting even more international markets once the iPhone 6 comes out and the 5c comes down in price a little more.

    The long term strategy looks good.

  3. The original Mac Air was too expensive and had low sales. It was ahead of it’s times. But Apple kept gradually lowering the price until it became a huge hit.

    The 5C is in the same position. Apple has been brilliant with it so far. They charge a lot (comparatively) and get a good return on their investment and then gradually lower the price until it’s a great deal. The fact that it uses most of the same parts as the 5S helps a lot. Sorry Apple haters, but it’s all part of a larger strategy and its working.

    The plastic outside is brilliant. They can change colors every few years, add in some funky patterns if they want, and keep making it look fresh. Apple is in this for the long haul.

  4. This guy knows nothing. With the exception of China, the markets in which the 8GB 5c has been launched have had LTE for about as long as the USA or even longer depending on the carrier. So it has nothing to do with driving up LTE adoption rates.
    It’s an entry level phone for those who basically just want a great smartphone but aren’t that interested in or perhaps can’t afford apps, music, etc.
    This phone is being sold here in Australia (3 national LTE networks and about 1/3 LTE market share of mobiles) with $0 up front and with no additional monthly payments on top of the contract phone plan. Perfect for teenagers, pensioners, low income workers and first time smartphone buyers who are upgrading from older dumb phones.

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