When Apple released its new phones, there was a lot of debate on how successful they would really be. The iPhone 5C is less expensive and has fewer perks, but at least you get an iPhone. The iPhone 5S is the more expensive model with a lot of the new features people are talking about, including the fingerprint lock mechanism. It was believed that the iPhone 5C was mostly being produced, so Apple could open up the markets in China with a less expensive phone. The only problem is that sales for the 5C have not been doing well, not even in China.
What makes Apple work
The thing that has always made Apple work was exclusivity. Even though the technology is really available to everyone, it seemed like something you could only access if you had money. By having a product that nobody else had and making it really expensive, Apple was able to gain a following. Even though almost everyone has an iPhone now, Apple has been able to maintain its appearance of being exclusive and better than the competition. Now that other manufacturers have caught up though, the competition is getting more fierce, and Apple is trying to compete. Apple has even been copying other manufacturers to stay ahead.
Apple, more than likely, made the change to sell the cheaper iPhone to open up its market to more people, but that is not what the people want.
Nobody buying the iPhone 5C
Nobody in the US is interested in the iPhone 5C, according to the LA Times, but that was to be expected. Americans have no problem forking out for the nicer phone if it means they are keeping up with the latest technology. The surprising bit is that people in China aren’t even buying it. ZDNet reports that surveys of phone purchases in China showed that 9 out of 10 people bought the iPhone 5S. That means that only 1 out of every 10 people actually bought the iPhone 5C. I guess Apple may not have needed a cheaper phone to be successful in China after all.
The biggest problem is that people in China were hoping the new iPhone 5C would be a budget phone that cost hardly anything at all. Even though the phone was still cheaper than the iPhone 5S, it still wasn’t a budget phone, and anyone willing to spend money on an iPhone was willing to fork out more to get the nicer version. If the phone was offered at little to no cost, the sales would likely have been increased significantly.
Apple doing better than expected
For Apple, having more 5S sales isn’t a bad thing. The more expensive phone costs hardly anything at all to make, meaning there will be a higher profit margin. This is great news for the company and all shareholders. Even though people are complaining of motion sickness due to the new features in the phone moving back and forth (CNET), Apple continues to sell and make a great profit.
Discover how Equiitext will enable your business to have engaging conversations with you customers with our patented AI messaging platform! Create your Business Messaging Account.