Apple released their new version of iPhone 5 quite recently and instead of only releasing one version, as they usually do, they released two: the iPhone 5S and the iPhone 5C. The iPhone 5C is made out of cheaper materials than the 5S and is therefor sold at a lower price. The release of the 5C is a new business tactic to target price-conscious consumers. Many businesses in different industries have used this type of tactic and have shown to be successful, but will it work for Apple?

Currently Apples sales for the iPhone 5C in comparison to the 5S do not match. The 5S appears to be much more desirable globally, but one Yankee Group analysis, Carl Howe says that once the frenzy over the 5S is over, the 5C will pick up sales. Could this be possible? Or could the reason behind this be because of the relatively small price difference? The iPhone’s target market is not one of cost-conscious consumers, but if that is their target market for the 5C, they are not hitting it with the approximate 100USD price difference.

Only time will tell whether Apples new business tactic is a success, or a bad mistake.

Source:
http://www.theguardian.com/technology/2013/oct/28/apple-iphone-earnings-disappoint-5c-5s