This blog post focuses on explaining the sales trend of Apple’s two new smartphones, the iPhone 5s and 5c. What is interesting about this is that although the 5c is available as a more affordable alternative, the sales record suggests that customers are still willing to pay more for the 5s.

I believe that the main goal for Apple on releasing the new iPhone 5c is to capture a new segment of customers. By charging lower prices and adding some ‘fun’ features into its new 5c model, Apple is able to cater a new group of customers with lower income and different lifestyles, most likely teenagers. Moreover, the 5c model allows Apple to play around with its STP. In the past, Apple relies on the ‘one-size-fits-all’ strategy on its smartphone product line. The introduction of 2 products this time allows Apple to segment its customers completely into 2 different groups and therefore attracts more customers, especially those customers who were put off by the previous iPhones due to their budget constraints. This diversification strategy has been successfully implemented by many of Apple’s competitors in the market, including Samsung and Blackberry.

However, by analysing the sales record provided, it clearly shows that the new 5c does very well in terms of sales, compared to its big brother, the 5s. Moreover, the interesting point here is that even in countries with lower level of income, customers are still willing to pay more to get the better 5s model. Apple should take into consideration of these trends and use them to adjust its current marketing strategies, especially the goal to capture new customers. Cost-benefit analysis should be done in order for Apple to gain insights and consider if the company is heading in the right direction or not.

(http://www.localytics.com/blog/2013/iphone-5s-outsells-5c-by-a-factor-of-3-4x-in-the-united-states-opening-weekend/)