I was really intrigued after reading Bryan Jiang’s blog, The Real Reason Behind the iPhone 5C, I presumed the main reason for Apple’s decision to release a lower end model of the iPhone 5S was to target a different market. The assumption was that “c” in iPhone 5C stood for “cheap.” As stated in Bryan’s second paragraph, this product could be intended to target a “new rising demographic of smartphone users.” This brings up an interesting question about the iPods, as it seems that Apple might completely phase them out and no longer make them.
According to Tony Bradley, his three main theories to why Apple created the iPhone 5C are as follows: cheaper iPhone for emerging markets, aimed at kids, and intended to clearly separate from iPhone 5S. I agree with those three points, but in addition, it seems as if Apple may have launched this iPhone line just to be different from their competitors. Similarly, Samsung has the Galaxy S4 mini. By launching the iPhone 5C, Apple may be competing in that market.
If Apple had priced the iPhone 5C at a cheaper price, I think it would have been more successful. Prior to the launch, numerous consumers assumed this phone would be cheap. Since the price was much higher than their expectations, the quantity demanded is lessened.
Sources:
http://www.forbes.com/sites/tonybradley/2013/09/16/three-reasons-apple-created-the-iphone-5c/