Apple Inc. (AAPL) introduced the newest phones that they’ve manufactured: the 5S and the 5c. Both phones have new and improved technology built into the product and provide a newer and more advanced experience for new users and Apple-enthusiasts alike. Despite this, Apple is in trouble. The 5c was built to be Apple’s cheapest new model, yet despite this, they still want to sell it at $549 to start. The product is still yet to be released in India, and the price at which Apple is looking to introduce their product at will be “more than five times the $99 buyers opting for a plan in the U.S. pay”, according to Kartikay Mehrotra, who wrote a report on 5c sales in India on Bloomberg (link to article at the bottom of the page).

Apple’s 5c was an attempt to provide a cheaper iPhone for those who liked their products but found their higher-end products out of their price range. The 5S – Apple’s newest high-end smartphone – is priced at $399 in the US, whereas in the UK, the cheapest (16GB), is £549 ($880) – more than double the price of the most expensive version in the US. Almost 80% of Samsung’s sales come from products priced below $380 (significantly cheaper than Apple’s newest models).

However, the iPhone continues to be very expensive and less desired than the Samsung products. Additionally, there have been complaints about the iPhone 5c. Despite being provided as a cheaper alternative to the iPhone 5S, the look of a 5c appear to be less visually appealing to customers. The material used makes it look cheaper than Apple products are ‘supposed’ to look, putting people off the phone in addition to the price of the phone itself.

http://www.bloomberg.com/news/2013-09-30/iphone-5c-sales-seen-tepid-as-contracts-shunned-corporate-india.html