Seeking Alpha

8GB iPhone 5C rolled out; iPad 2 replaced with 4th-gen model

  • As rumored, Apple (AAPL) has rolled out an 8GB iPhone 5C in European markets. The device goes for £429 ($712) unsubsidized in the U.K., or £40 ($66) less than the 16GB model. Apple hasn't yet begun offering the 8GB model in the U.S., nor has it discontinued the 8GB iPhone 4S (£349 in the U.K.).
  • Also: Apple is discontinuing the iPad 2, and will now offer the 4th-gen iPad at the iPad 2's old price points (16GB Wi-Fi-only model goes for $399).
  • While thicker and heavier than the iPad Air (starts at $499), the 4th-gen iPad boasts much better specs (retina display, A6X CPU vs. A5, 5MP rear camera vs. 0.9MP) than the iPad 2. Apple's October decision to keep the iPad 2 in its lineup following the Air launch, rather than offer the 4th-gen iPad at a discount, had raised eyebrows.
  • 26M iPads were sold in Q4 (+13.5% Y/Y) at a $440 ASP. IDC put the tablet's Q4 share at 33.8% (-440 bps Y/Y).
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Comments (9)
  • scott trader
    , contributor
    Comments (5511) | Send Message
     
    1.4 billion households in the world... 7 billion people in the world......200 plus million iPads sold...lots of room for growth...
    18 Mar 2014, 11:53 AM Reply Like
  • rw1270
    , contributor
    Comments (389) | Send Message
     
    Yeah, especially that all those people have $700 just sitting around to be shelled out for two or three year old tech product. Brilliant - why didn't I think of that...
    18 Mar 2014, 02:20 PM Reply Like
  • kimboslice
    , contributor
    Comments (1603) | Send Message
     
    iPad 2 new at Walmart for $300, get 'em while they're hot.
    18 Mar 2014, 12:29 PM Reply Like
  • iOS7 needs to revolutinize
    , contributor
    Comments (89) | Send Message
     
    $712 for a cheap iPhone 5C? Is Apple out of its mind? I'm long $AAPL, but no way I would spend that kind of money for a 5C of any kind.
    18 Mar 2014, 02:57 PM Reply Like
  • NWCats404
    , contributor
    Comments (289) | Send Message
     
    I also wouldn't want to spend that much on an 8G 5C, but a lot of people may look at it as saving $65. Apple clearly seems reluctant to rush into discounting products, but I would guess these will be further discounted in one or a few months. Over time I expect the pricing distance between Apple's premium products and its second and third-tier products to grow. It was $100 between 5S and 5C; it may be $250 between 8S and 8C(or whatever).
    18 Mar 2014, 03:44 PM Reply Like
  • techy46
    , contributor
    Comments (7282) | Send Message
     
    You're paying more then that for an iPhone from AT&T or Verizon but they're just hiding the real price by adding a monthly subsidy to your bill. Let's see $25 month for 24 months is $600 plus $199 is $799.
    18 Mar 2014, 04:23 PM Reply Like
  • MJ Pragmatist
    , contributor
    Comments (198) | Send Message
     
    About time Apple swapped out the iPad 2 at $399 for the iPad 4. The iPhone 5C with 8 GB of memory is a good idea too. They need to spread out their product line a little more.
    18 Mar 2014, 09:59 PM Reply Like
  • SA User 74XXXXX
    , contributor
    Comments (667) | Send Message
     
    If the mix of iPhone 5C has anything missing, it is the color Gold, not whatever SSD gigabytes one can think of.

     

    If there were Gold Color 5C, the reception of iPhone 5C in emerging markets could have been completely the opposite.
    19 Mar 2014, 03:19 AM Reply Like
  • Kahokfan67
    , contributor
    Comments (48) | Send Message
     
    Apple will not make a lot from this product but will bring more into the ecosystem. Like the Sopranos, Apple has a history of once they've hooked, they keep dragging you back in.
    19 Mar 2014, 08:50 AM Reply Like
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