Despite Android phones having better specifications than Iphones, Apple still manages to have the most market share and sales, this may be because of the prestige and the lifestyle associated with Iphones. With the release of the Iphone 5S and 5C, wouldn’t Apple be making a loss through the costs associated with the production and marketing of the 5C? This is because psychology may play a role in this: even when customers intended to buy the 5C, won’t they be tempted to pay the extra hundred dollars to purchase the 5S as it offers more prestige and durability (5C is made of plastic)? Does this mean that the 5C serves to make the 5S look more appealing and therefore boosts its sales? This is probably not the case because it still has higher sales than Android Phones and it also serves to broaden Apple’s customer base.

 http://www.businessweek.com/articles/2013-09-23/apple-sold-9-million-iphones-last-weekend-dot-heres-why