The new generation of iPhone – iPhone5s and iPhone5c

As a most innovative smart phone company in the world, Apple has attracted everyone’s attention on its new products. Since the miracle of iPhone 4, people are getting higher expectations on the next generation of iPhone.

The new iPhone5s and iPhone5c launched in Canada market at September 20th. iPhone5s, a new continues generation of iPhone5, has the most advanced technologies from Apple. However, more people are interested on the iPhone5c which is the first product rated as “lower class” in iPhone family. With the technologies from iPhone5 and new material surface, iPhone5c was being expected by people who are not willing to pay $700 dollars on a cellphone. People were expecting to buy an iPhone5c with a price around half of a new iPhone5S. However, it turned out that iPhone5c is only $120 cheaper than iPhone5s.

Lots people began to critisize the marketing strategy of apple. If Apple wants to make profits from those people who are not able to pay almost $800 for an iPhone, Apple should at least make a reasonable price differences between those two new products. Therefore, some people said that the iPhone5c is just a marketing strategy of Apple. When people are thinking iPhone5s is too expensive for them, they will take a look at iPhone5c. With only $120 more expensive, most people will spend $800 to get iPhone5s which is the best newest and best iPhone now. Before the launch of iPhone5c, people were guessing that Apple was targeting the market in China. Since there are millions of people are willing to use an iPhone, but not able to pay the money, Apple designed a new products just for those people. But no one knew that they all mis-predict the marketing strategy of Apple.

Also, if we go to the US Apple website, we can see that the price of new iPhone5s is $649. The price of new iPhone5s is $720 in Canada. Obviously, the marketing strategy is different for US and Canada. But why they set different prices for two markets with similar behaviour?

 

Peng Zhang  2013/10/01

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