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China Is the Only Reason the iPhone 5c Matters

9/10/2013 06:45 PM EDT
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Scott Elder
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Re: Priced too high. Apple underestimates competition
Scott Elder   10/5/2013 5:55:28 PM
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<<But they seem to have won that argument.>>

I don't think so.  The 5C is already seeing price cuts and there has always been volume on the shelf for this plastic version.  Noone can unload their plastic iphones.

http://www.slashgear.com/iphone-5c-already-seeing-cuts-as-retailers-hunt-plastic-sales-04300296/

 

goafrit
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Re: Cheap?
goafrit   10/4/2013 2:48:38 PM
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>> The 5C is indeed puzzling. It seems aimed more at teenagers in the developed world than at emerging market consumers.

That is the business. Apple wants to eat into Android in BRIC and other emerging regions of the world. So far, they have the right strategy as the numbers are moving north.

goafrit
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Re: Priced too high. Apple underestimates competition
goafrit   10/4/2013 2:47:33 PM
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>> Apple is forgetting their roots.  Apple making a plastic 5C is like Mercedes Benz making a Tata Nano.

But they seem to have won that argument. They sold 9 million units in a week, twice the number sold in the last roll-out. When markets become fluid, companies must open to do away with their roots.

junko.yoshida
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Re: Priced too high. Apple underestimates competition
junko.yoshida   9/13/2013 10:02:50 AM
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@Scott, I whole-heartedly agree with you.

You wrote:

 Apple making a plastic 5C is like Mercedes Benz making a Tata Nano.

Well put. See my other blog: China's Take on iPhones: It May Surprise You

junko.yoshida
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Re: Priced too high. Apple underestimates competition
junko.yoshida   9/13/2013 9:46:23 AM
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Hi, Nicolas. I think you pretty much read my mind when it comes to what I was intending to write in my follow-up blog. I am in total agreement with your thesis above.

Here's my Apple follow-up blog:

China's Take on iPhones: It May Surprise you

amar.ramteke2
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Re: Apple Strategy, my take
amar.ramteke2   9/13/2013 6:46:51 AM
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@Junko,Apple will never make a product for such a mass market. It won't be Apple anymore. This was the belief of Late Steve Jobs too. And as I said earlier, I don't think 5C is supposed to take on mass market. They already have their market. They just want to sell more iPhones to the same people, its enough to make them richer.

Nicolas_Yu.Wang
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Re: Priced too high. Apple underestimates competition
Nicolas_Yu.Wang   9/13/2013 5:05:17 AM
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I've always loved t o read Yoshida's blog, but this one surprises me since it makes me think that 5c is a cheap phone to gain China/developing-country market. Actually it's not, at least from what has been disclosed.

As pointed in "priced too high", 5c is quite expensive indeed. The price is higher than Iphone5 if you check on China retailer webpage and is just 100$ less than 5s. And talking about contract, why don't people buy 5s? I don't think it's the "game changer" for Apple. As stated , it's designed for those who want some different/better Iphone5 with new colors, for young people.

Apple will try to get China market though, considering the size. The truth is, in China, people buy Iphone not because it's cheap. They buy it because it's really good and cool enough. People will save 1-2 months salary, for an Iphone. And Samsung successfully built up this high quality image too. That's why Samsung is the biggest competitor to Apple, while all others are not.

Unless they cut 5c price by half, Apple is still Apple. They are not going/able to compete with local vendors.

 

 

sprite0022
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Re: Priced too high. Apple underestimates competition
sprite0022   9/12/2013 8:04:14 PM
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what they should do is get a 2nd brand, ie. orange, grape etc. just like benz's smart franchise.

Scott Elder
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Re: Priced too high. Apple underestimates competition
Scott Elder   9/12/2013 1:43:55 PM
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Apple is forgetting their roots.  Apple making a plastic 5C is like Mercedes Benz making a Tata Nano.

Apple's 5C strategy, if at all, should have been like the Mercedes-Benz C Class strategy.  Drop some of the power/performance and size, but kept the user interface the same high quality.

Apple needs new innovative products--not chasing the price curve down.  Their products need to be seen as a purchase goal for someone buying a cheap phone.  Not everyone can afford an Apple.  Even in China, the populace wants to "keep up with the Jones".

Frank Eory
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CEO
Re: Cheap?
Frank Eory   9/12/2013 1:17:45 PM
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The 5C is indeed puzzling. It seems aimed more at teenagers in the developed world than at emerging market consumers.

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