When Apple released its new phones, there was a lot of debate on how
successful they would really be. The iPhone 5C is less expensive and has
fewer perks, but at least you get an iPhone. The iPhone 5S is the more
expensive model with a lot of the new features people are talking about,
including the fingerprint lock mechanism. It was believed that the iPhone
5C was mostly being produced, so Apple could open up the markets in China
with a less expensive phone. The only problem is that sales for the 5C have
not been doing well, not even in China.
What makes Apple work
The thing that has always made Apple work was exclusivity. Even though the
technology is really available to everyone, it seemed like something you
could only access if you had money. By having a product that nobody else
had and making it really expensive, Apple was able to gain a following.
Even though almost everyone has an iPhone now, Apple has been able to
maintain its appearance of being exclusive and better than the competition.
Now that other manufacturers have caught up though, the competition is
getting more fierce, and Apple is trying to compete. Apple has even been
copying other manufacturers to stay ahead.
Apple, more than likely, made the change to sell the cheaper iPhone to open
up its market to more people, but that is not what the people want.
Nobody buying the iPhone 5C
Nobody in the US is interested in the iPhone 5C, according to the LA Times,
but that was to be expected. Americans have no problem forking out for the
nicer phone if it means they are keeping up with the latest technology. The
surprising bit is that people in China aren’t even buying it. ZDNet reports
that surveys of phone purchases in China showed that 9 out of 10 people
bought the iPhone 5S. That means that only 1 out of every 10 people
actually bought the iPhone 5C. I guess Apple may not have needed a cheaper
phone to be successful in China after all.
The biggest problem is that people in China were hoping the new iPhone 5C
would be a budget phone that cost hardly anything at all. Even though the
phone was still cheaper than the iPhone 5S, it still wasn’t a budget phone,
and anyone willing to spend money on an iPhone was willing to fork out more
to get the nicer version. If the phone was offered at little to no cost,
the sales would likely have been increased significantly.
Apple doing better than expected
For Apple, having more 5S sales isn’t a bad thing. The more expensive phone
costs hardly anything at all to make, meaning there will be a higher profit
margin. This is great news for the company and all shareholders. Even
though people are complaining of motion sickness due to the new features in
the phone moving back and forth (CNET), Apple continues to sell and make a
great profit.
Mobile technology news brought to you by www.businesstexter.com
Sources:
http://www.latimes.com/business/technology/la-fi-tn-apple-record-iphone-5c-5s-20130923,0,7047811.story
http://www.zdnet.com/cn/9-in-10-in-china-bought-iphone-5s-instead-of-5c-7000021141/?utm_medium=App.net&utm_source=PourOver
http://news.cnet.com/8301-13579_3-57604741-37/iphone-ipad-owners-complain-of-motion-sickness-due-to-ios-7/