iPhone 5S Outselling the iPhone 5C: 10 Reasons Why

By Don Reisinger

If Apple has learned anything over the last decade, it’s that its customers really don’t like a second-class product. And yet, that’s exactly what the iPhone 5C is. Apple was able to get by in the past by reducing the price of last year’s model. But this time around, the company introduced two new models, including the 5C as Apple’s version of an entry-level smartphone. That move makes Apple look like it is trying to compete on price because they are scared of Android’s popularity.

The iPhone 5C’s big claim to fame is that it comes in all kinds of colors. But the truth is, color choice isn’t that big a deal for most people. Customers don’t necessarily need more colors; they need more functionality. Unfortunately, Apple isn’t delivering that in the 5C.

Apple made a huge mistake by announcing the iPhone 5C in the same year it offered up a nominal upgrade in the iPhone 5S. The difference between the iPhone 5S and iPhone 5C aren’t so great that Apple can appeal to two separate markets. If Apple had waited a year and put some distance between its product specs, it might have seen both devices achieve more success.

Technology buyers are still heavily affected by reviews. The generally tepid reviews that iPhone 5Cs received didn’t add any sales momentum. If the iPhone 5C garnered better reviews, it might have sold better.

Looking at the iPhone 5C, there really isn’t much to it that would make today’s iPhone 5 owners want to switch. Those folks reason that they can save $100 and have a device that’s about the same as Apple’s latest update. Better yet, the iPhone 5 units they bought last year might come with more storage, depending on the version they picked. For many prospective buyers, there’s no reason to jump from the iPhone 5 to the iPhone 5C.

Apple also made the somewhat surprising decision to keep the iPhone 4S on store shelves. By doing so, the company likely provided a significant incentive for entry-level customers to buy the old device. Sure, it comes with less storage, but for novice users, offering the 4S free with a mobile service plan is awfully appealing.

Apple’s gold iPhone 5S has proven to be a hit among consumers. If Apple didn’t launch the new color option, it might have been possible for the device maker to sell more iPhone 5C units. But with the gold option, Apple has found a way to attract more people to the iPhone 5S and not the iPhone 5C.

From the average carrier’s perspective, it makes little sense to invest heavily in the iPhone 5C. After all, the margins are higher with the iPhone 5S and that device promises to sell better than the iPhone 5C. If the carriers continue to treat the iPhone 5C like an also-ran, consumers will start to believe it.

The iPhone 5C is designed for the middle of the smartphone market. However, Apple is facing all kinds of pressure and competition in that marketplace, making it harder to break out than in the higher end of the space. Apple might have made a mistake by trying to target the mid-level market with the iPhone 5C.

Apple seems lost on how it wants to market the iPhone 5C. The device is being pitched as an alternative to the iPhone 5S that people who like colors will really enjoy. Fine, but what else is there to it for a person to spend $100? Apple needs to do a better job of explaining why its device is a worthwhile buy. So far, it hasn’t done that.