When Apple released it the iPhone 5C in September, many expected it to be a low cost alternative that Apple could use to break into emerging markets. However, the retail price of the 5c is $549 (off contract) only $100 dollars cheaper than the 5s (US prices). The phone is by no means “cheap” either, as the build quality is up to Apple standards in every way, the only difference being the internals and choice of materials.

Looking more closely, there was something missing at this year’s iPhone announcement; no new iPods. The iPod was once the face of apple but in July this year apple reported that sales of its iPods were down 31% from last year. This number may seem concerning but it also reflects a change in the marketplace for smartphones. Over the past year American and Canadian telecom providers have created family shared plans that make it easier for parents to buy smartphones for their children. These are the same children that Apple targeted with their iPod touch line of products. In fact, smartphone usage among teens (ages 12-17) have increased of the past few years and are expected to climb even more in the future. So perhaps the colourful iPhone 5c wasn’t made for the low cost segment of smartphones, but rather a product targeted at new rising demographic of smartphone users.

http://store.apple.com/us/buy-iphone/iphone5c

http://www.slashgear.com/ipod-sales-down-31-from-last-year-gets-no-mention-from-apple-23291528/