The recent news said that iPhone 5c could spell serious trouble for Apple.

In my analysis, the sale of iPhone 5c meets such a temporary failure due to two main reasons.

– the price gap between iPhone 5c and iPhone 5s is not large enough. Firstly, the difference between the prices of these two new phones is only $100. People who are eager to buy an iPhone won’t care this $100.

-Apple usually follows differentiation strategy. The uniqueness of Apple products is what Apple stands for in the market. However, iPhone 5c becomes a signal that Apple moves towards cost leadership strategy.Selling iPhone 5s and 5c at the same time is graphic to show Apple is stuck in the middle.

In my analysis, the price gap and the strategy movement are two main reasons for bad sale of iPhone 5c.I recommend Apple to decrease the price of 5c. However, the latter reason cannot be covered before next iPhone being published. What’s worse, it decreases the whole class of Apple in consumers’ mind. I recommend to no more produce  products like iPhone 5c. If Apple wants to keep iPhone in a high class, they should not produce stuffs in a low class.

(The news can be found at: http://bgr.com/2013/09/18/iphone-5c-sales-projections-iphone-5s/)