Flora Sun's Blog

Apple has announced their new Iphone 5C and Iphone 5S last month and the Best Buy is now selling Iphone 5C for fifty dollars with a two-year contract. Compared to Iphone 5S, the demand for 5C is fairly low and this is the major reason why Best Buy put Iphone 5C on sale. Apple has always been the top smart phone producer with almost the highest price in the market and compared to Samsung and other smartphone producers, Apple offers limited kinds of smartphones in one season. Apple always puts their phones onto a high position, however, in order to expand their market, Apple comes out with Iphone 5C which can help them attract more customers who cannot afford Iphone before. However, this behavior also loses the original position of Apple products. This is the reason for the high demand of Iphone 5S and low demand for Iphone 5C. Another reason is that Samsung has already been producing various smartphones with lower price for a lone time and occupied the position. Apple, which comes later than Samsung, has difficulties to attract consumers.

News Link: http://ca.finance.yahoo.com/news/iphone-5cs-price-cut-half-121700062.html