“The world’s biggest public company and the world’s biggest country are at loggerheads over the price of a phone.” Along with the debut of the new flagship phone of the company, Apple Inc. has also introduced the plastic-backed iPhone 5C, which is more “affordable” and targeted at the lower end of the consumer market. However, the price of an iPhone 5C in China is not considered to be affordable at all. Chinese consumers are paying 4,488 Yuan (US$730) for their iPhone 5C, and it is almost $200 more than the retail price in the US. Apple’s new iPhone 5C is essentially a repackaged iPhone 5, an older model of the iPhone line-up, and yet they are charging a premium price, especially on the Chinese consumers. Apple believes that there is still huge market with many potential consumers in this country of 1.4 billion people. So even with the increased price, Apple is certain that it will generate a great sum of profit and there is no point of lowering the price to suit the market. Apple is taking advantage of the Chinese market because it knows that the number of people who are still willing to pay the full price of a new iPhone is enormous.
