iPhone 5C Is a Smart Apple Move: 10 Reasons Why

 
 
By Don Reisinger  |  Posted 2013-08-20 Email Print this article Print
 
 
 
 
 
 
 
 

Apple is expected to hold a special press event on Sept. 10. At that event, the company will announce not one, but two iPhones, according to just about every analyst and report out of Cupertino. The first handset will be the long-expected new flagship model, the iPhone 5S. That device will reportedly come with enhanced features that will put it in direct competition with the Samsung Galaxy S 4. The smartphone will be designed to replace the iPhone 5. The other smartphone Apple plans to announce, according to reports, is the iPhone 5C. All signs point to the iPhone 5C delivering small updates over the iPhone 5, while featuring a plastic casing that will come in different colors. It’s believed that the iPhone 5C will be Apple’s lower-end product and will replace the iPhone 5 that’s available now. The iPhone 4S, meanwhile, will remain on store shelves, according to a recent analyst report. Assuming Apple announces two new smartphones, the company should expect all kinds of success. Launching the iPhone 5C is a good idea; it offers promise and could help Apple nab more market share from Android. This slide show highlights the reasons it’s a smart move to launch the iPhone 5C.

 
 
 
  • 1 of

  • iPhone 5C Is a Smart Apple Move: 10 Reasons Why

    By Don Reisinger
    0-iPhone 5C Is a Smart Apple Move: 10 Reasons Why

  • The iPhone 5 Is Already Popular

    If all the reports are true, the iPhone 5C is being modeled after the iPhone 5. For Apple, that’s a good thing. The iPhone 5 is already a popular product, making the iPhone 5C immediately appealing to customers looking to get their hands on a new handset. Apple isn’t trying to do too much with the iPhone 5C, but it wants to refresh sales with an intermediate model a notch below the flagship iPhone 5S.
    1-The iPhone 5 Is Already Popular

  • Not Everyone Wants the Flagship

    Although the excitement surrounding the flagship smartphones is always palpable, not everyone is so quick to buy the latest and greatest products. In fact, there are quite a few people out there who like the idea of buying a lower-end model to save some cash. The iPhone 5C appeals to those budget-conscious folks.
    2-Not Everyone Wants the Flagship

  • A New Revenue Stream?

    Apple needs a new revenue stream in the smartphone market. Granted, the company has been offering multiple iPhones for years, but they’ve done little to build excitement. The iPhone 5C should be able to deliver strong margins while exciting certain customers. It’s a win-win.
    3-A New Revenue Stream?

  • Multiple Colors Really Matter

    It might sound trivial, but history has shown that multiple color options really matter to customers. In fact, the more colors Apple, Samsung, and other companies offer, the more customers like it. Smartphone purchases today are as much about personalization as they are about features. And additional color options, which should be available with the iPhone 5C, cater to those who want that enhanced personalization.
    4-Multiple Colors Really Matter

  • The Added Cost Will Be Nil

    According to reports, the iPhone 5C will be little more than an iPhone 5 replica, save for some design enhancements and the additional colors. That’s a good thing for Apple. It means that the company’s manufacturers won’t have any trouble producing the product and that its costs will be kept down. Best of all, more manageable costs usually mean more profit.
    5-The Added Cost Will Be Nil

  • New Products Excite Customers

    Sure, Apple could have decided to stick with its old strategy of reducing the price on previous products, but it loses excitement around its devices when it does that. By launching a new smartphone in the iPhone 5C, Apple can build up the hype and excitement that’s been lacking when it announces plans to reduce the price on last year’s models.
    6-New Products Excite Customers

  • It Puts Apple in Competition With Lower-End Providers

    Apple really isn’t competing all that effectively with lower-end vendors. It has consistently offered products for the higher end of the market. The company’s older products might have similar specs as lower-end products, but they were once flagship devices. Apple has never actually introduced smartphones with the budget-conscious customer in mind. The iPhone 5C could allow for that, and thus, appeal more to customers.
    7-It Puts Apple in Competition With Lower-End Providers

  • A Midrange Product at a Low-End Price

    Although the iPhone 5C is being called a “low-end” product by market handicappers, a recent analyst report from KGI Securities says that the product will actually deliver midrange capabilities, but come in at a low-end price. That means that the iPhone 5C will offer solid value. And in the smartphone market, solid value typically means strong sales.
    8-A Midrange Product at a Low-End Price

  • Just Look At the iPad Mini

    The iPad Mini is perhaps the best template for what the iPhone 5C could become for Apple. The device was designed to appeal to budget-conscious and mobile shoppers, and has done so with ease. Meanwhile, Apple’s iPad sales have skyrocketed. There were even recent rumors Apple was preparing to introduce an “iPhone Mini” If the iPad Mini is such a success, there’s no reason to suggest the iPhone 5C wouldn’t follow suit.
    9-Just Look At the iPad Mini

  • Apple Needs More Devices

    Apple might still be selling the iPhone 4, iPhone 4S and iPhone 5, but the company truly needs more handsets to sell to customers. Those products, save for the iPhone 5, are known quantities and look elderly compared with current models on the market. With the iPhone 5C, Apple can deliver another worthwhile option while keeping its older products on store shelves. As recent history has shown, Apple likes its products to have staying power in the market.
    10-Apple Needs More Devices
 
 
 
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 

11 Comments for "iPhone 5C Is a Smart Apple Move: 10 Reasons Why"

  • shawn September 12, 2013 9:26 am

    It is interesting to read this prediction and now that the phone is released, turns out 5c is really a dud and will not allow apple to capture low end market share. I find it hard to understand why anyone would buy a 5c if the price of the newer model is only 100 bucks less than newer generation. Like it or not, cell business is going to move to unsubsidized pricing and Apple needs a low cost phone to stick around with 30+% marketshare. Nokia (phone 8) and android are able to make a very nice workable phone that cost only about 100 bucks. That is 5x cheaper! I am not saying we needed a $100 apple phone, but maybe a $300 contract free phone that is not locked a specific carrier seems doable. They better get with program, or they will be stuck with just the apple fan base and could fall to 10% marketshare.

  • MBF August 30, 2013 1:25 pm

    According to the article, its a smart move because “The iPhone 5 is popular” - True, but so is Mercedes-Benz. Now tell me why I should buy the 5C which is neither an iPhone 5 or a Mercedes-Benz. “Not everyone wants a flagship” – Great, now I know where the line for mediocre is. “Apple needs a revenue stream.” - I’m not sure this matters to anyone not employed by Apple “It comes in colors” - Wow, colors, really? That’s a big selling point? “It’s not going to cost Apple much to produce them.” In case you missed it earlier, no one outside of Apple cares what it costs Apple “New products are exciting.” - No, GOOD new products are exciting. The old product with fewer features doesn’t excite anyone. “It puts Apple in competition with other low-end products.” – Great. Now we know where to buy low-end products. “Some people say this low-end product is really a mid-range product!” Which makes it a good GOOD low-end product. Yay! “Just look at the iPad Mini” – Is that the new sales pitch? Look at something you’re not buying, and then write a check? “Apple needs more devices” - Customers don’t care what “Apple needs” We care about what we need.

  • Shamunda August 30, 2013 10:46 am

    Look guys; try as the media would like. Apple is pretty much old news no matter how you slice it. Cheap phones, newer phones, etc all comes down to the same vendor that simply doesn't have the lackluster it once had. New cheaper phone? No this doesn't do anything for apple, mark my words. Cheaper phones are fine in adding to a portfolio of devices they offer, but the premise of the iPhone was that it was a premier phone. Otherwise those that bought an upscale version of the phone are truly, well, played.

  • Mike August 30, 2013 9:43 am

    I think the iPad mini is a success because the 7 inch tablet is a better form factor for mobilty, not because it is cheaper. Look at all the popular android based tablets. The 7" is the popular model A cheap iPhone doesn't make sense because most people in this country have their phone subsidized by the phone company. Who cares if you pay a one time charge of $99 or $199 when you are paying around $2400 over the life of the 2 year contract.

  • George Adams August 22, 2013 12:19 pm

    The iPhone 5C would be a great choice for businesses looking to deploy B2E productivity apps to their mobile workforce - All the features of the 5, but not at the latest flagship pricepoint.

Leave a Comment

 
Manage your Newsletters: Login   Register My Newsletters























 
 
 
 
 
 
 
 
 
 
 
 
 
Rocket Fuel