Seeking Alpha

Leaked docs point to cheaper iPhone 5C

  • Leaked documents from German carrier O2 indicate Apple (AAPL +0.9%) is launching an 8GB iPhone 5C sporting a local retail price €60 ($83) below that of the current 16GB 5C.
  • The launch of an 8GB 5C could lead Apple to discontinue the 8GB iPhone 4S, currently the cheapest available model in most markets (the iPhone 4 is still available in some emerging markets). The 4S goes for an unsubsidized $450 in the U.S. (it's free with subsidies), and the 16GB 5C for $550.
  • Sales of the plastic-shell 5C have underwhelmed, as buyers in most markets overwhelmingly opt for the more advanced, aluminum, 5S. Soft 5C sales were a reason Apple missed Dec. quarter iPhone unit forecasts, albeit while posting a $60 Q/Q iPhone ASP increase.
From other sites
Comments (16)
  • Doc's Trading
    , contributor
    Comments (1734) | Send Message
     
    Please don't use my name. Need to spell out documents. :-) lol.
    17 Mar 2014, 01:30 PM Reply Like
  • HappiHenri
    , contributor
    Comments (50) | Send Message
     
    On one hand it is good to see Apple reacting to slow sales by lowering some prices in order to maintain some market share.

     

    But on the other hand it's too bad because I have found the 5c to be a great phone! I know that some have criticized it for it's plastic case, but as Lisa from MobileTechReview points out very well it's about as high quality as one could possibly have, and it's actually more durable than the scratchable metal on the 5/5s.

     

    http://bit.ly/1qMc45m

     

    I think the problem has been that everyone, including Apple themselves, have treated the 5c as the bastard step-child in the Apple iPhone line. It's always around but they don't want to talk about it - they only want to talk about their shining star the 5s. But for most people the 5c works just fine (not just fine - but far better than I ever expected), and if purchased for a good price (like - free with 2 year service renewal) it is a great deal.

     

    Once the iPhone 6 is released it will be interesting to see how Apple re-configures their entire phone line-up of 4s, 5c, 5s, & 6.
    17 Mar 2014, 01:30 PM Reply Like
  • civ-e
    , contributor
    Comments (448) | Send Message
     
    the slimmer and lighter weight alone of the 5S made it an obvious choice (for me) over the 5C, for just a tiny incremental additional cost. nevermind the newer chips or features inside.
    17 Mar 2014, 04:33 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1474) | Send Message
     
    They aren't lowering the cost, they are creating a new lower priced option with half the memory. I think it's for the Chinese market, the 4s won't run on China mobile's network. This gives Apple a third price point for that market.
    18 Mar 2014, 03:40 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    So today i was showing off my Moto X, then one of the employees proudly showed off her IPhone 4s!

     

    Yesterday when I was showing it off, the restauranteurs have IPhone 5 (or s), they paid the premium price.

     

    The 5c other than the market it has, and that has been successful compared to any other companies' 4k+ RMB phone, will not be appreciably gaining new purchasers from just reducing 1000 RMB.

     

    18 Mar 2014, 09:37 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    The 5 is still for sale in Cn! And those modern sleek looks is what native mainland Cn are after, not saving a few CN bucks.
    18 Mar 2014, 09:38 AM Reply Like
  • dwolsefer
    , contributor
    Comments (2) | Send Message
     
    I actually think 5C sales are going to pick up. I believe there is a lot of rotation going on in the corporate world from blackberry to iPhone 5C 16 GB.
    17 Mar 2014, 01:42 PM Reply Like
  • dmarilley
    , contributor
    Comments (616) | Send Message
     
    People are finding better things to sink money into than these devices, so prices will crater. That is human progress.
    17 Mar 2014, 01:48 PM Reply Like
  • Gary J
    , contributor
    Comments (6280) | Send Message
     
    Yes BMW, Whole Foods and Nike did. Wait...
    17 Mar 2014, 01:51 PM Reply Like
  • RAP77
    , contributor
    Comments (390) | Send Message
     
    Dropping the price $83 for less memory. That's a good deal? Sounds stupid, a total non event. The 5c is not that good and it's still way overpriced.
    17 Mar 2014, 02:37 PM Reply Like
  • Western Investor
    , contributor
    Comments (41) | Send Message
     
    Ever since the 5C was announced my opinion has been that it was designed for the long term (in terms of smartphones at least) with the idea being that it would creep towards the low-mid end price point over the next year or two and wind up being very competitive in emerging markets pricewise (as well as quality and functionality wise) allowing Apple to expand its user base profitably without cannibalizing too much of its high margin high-end smartphone business. I like this strategy as I believe that the key to Apple's long term sustainability will be expanding their software ecosystem's user base in the next few years. At the same time I don't want to see them give up too much ground on margins in the short term and I think that the 5C will help to achieve this.
    17 Mar 2014, 04:39 PM Reply Like
  • gatesbuster
    , contributor
    Comments (6) | Send Message
     
    I believe they should have come with a black version instead of these kid's colors. They are ugly and not anywone wants to spend money for a case.
    17 Mar 2014, 08:42 PM Reply Like
  • kimboslice
    , contributor
    Comments (1660) | Send Message
     
    The iPhone 4S is $280 if you buy from Virginmobile USA. The 5c 16gb is $360. They would operate on the Virginmobile network which is actually Sprint.

     

    An 8gb phone is perfectly OK, you can get Dropbox and others on it to store things when you exceed your phone memory.

     

    I'm sure Apple will sell lots of iPhones either way.
    18 Mar 2014, 01:14 AM Reply Like
  • faramarz
    , contributor
    Comments (319) | Send Message
     
    Apple's 5c is not there for only a year. It is a long term strategie.
    1) to take some of the middle price market share. That is why the 8gb may be launched in near future. After the Iphone6 launch the 5c's 8 & 16 gb official price will be that of 4s now. And, Apple after the 6s launch in 2015 will again lower the price to what the 4 is sold now. This way, apple will effectively get some market share in middle price segment giving those people access to high quality iphones at reasonable price.
    2) Apple's 5c strategie described above will almost not canibalize it's flagship device's sales. This is proven with the sales figures of Q1 2014. The ASP of $637 shows a mixtes towards 5s.
    3) tge one year old 5s will sell as good as 4s in it's time when the 5 was launched. This will fill the gap between the high end (the flag ship) & the middle end (the 5c generation).

     

    If this is true ( i firmly beleive that it is the strategie behind 5c) then we can say that Apple has found the best way to occupy a bigger market segment without much sacrificing the gross margin.
    18 Mar 2014, 05:01 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4380) | Send Message
     
    I'm quite surprised that Apple chose plastic cases in unsophisticated bright colors for the 5C. Is that really the level of style and quality that they want people to associate with the name Apple? Sure, it won't cannibalize sales of higher products, but it also doesn't stand up on its own as a product worthy of the Apple logo. It pretty much screams CHEAP!
    18 Mar 2014, 06:15 AM Reply Like
  • Some Ranty Guy
    , contributor
    Comments (7) | Send Message
     
    Apple has been in a 3 tier mode now for years. Usually the new phone as tier one, with tier 2 and 3 being the last two models. The 5C changed this mode. The 5C was simply meant to replace the 4S, and the 4S took the place of the 4. I bet the next move is to introduce a new 3rd phone.

     

    None of them are meant to sell to poor consumers. Apple like to think of itself as the BMW of consumer electronics, and making a bargain basement product is the opposite of their brand.
    18 Mar 2014, 09:17 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs