The “Cheaper” iPhone
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The iPhone 5c was marketed as a more affordable alternative to the iPhone 5s. However, when the phones were brought to the market, the price of the “cheaper” model was shocking. I had expected “cheaper” to mean anywhere between 100-400 dollars, but the 5c actually retails between $599 to $719 (source).
Coming out with 2 lines of iPhones is an interesting strategy by Apple. It could be risky in that bringing out a less expensive version would cause the 5 and 5s to lose credibility with the original segment that Apple was focused on. The elite, stylish people that the original iPhone is targeted towards could become uninterested in the product after discovering that it is made using pretty much the same things as the plastic ones. However, I think that it was actually a smart plan to make the iPhone 5c at such a high price point because this way, the customers won’t think that the phone itself is cheap, just the shell that it is wrapped in. Having two types of phones allows Apple to target two separate markets while still holding its foot in the door of the higher end smartphone industry.