Apple's founder, Steve Jobs, had always emphasized on high-end products over cheaper, less premium ones. However, by bringing out the iPhone 5C, Apple went against his principles. The result?The new plasticy phone isn't selling too well in the US. Reports indicate that Apple is selling two to three iPhone 5Ss for every iPhone 5C.
Apart form this, orders of the cheaper iPhone have been cut for the final three months of the year, according to a source familiar with the company's supply chain situation. Pegatron Corp, a major Taiwanese manufacturer of Apple's new iPhones, said that their iPhone 5C orders have been reduced by less than 20 percent, according to Reuters. Wall Street Journal has also reported that Hon Hai Precision Industry Co, another manufacturer of the iPhone 5C, saw its orders cut by a third.
The iPhone 5C was a huge paradigm shift for Apple, since it has never focused on low-end or even mid-range products before. And when it comes to Apple's iPhone, the company has always kept things elegant, classy and premium, allowing it to be looked upon as a premium product. But with the iPhone 5C, its went in the opposite direction by Apple stooping down to build the handset out of plastic.
Also, despite having cut corners with the iPhone 5C, Apple still priced the device like a premium handset. In China, the plasticy handset is only Rs.8,000 cheaper than the premium iPhone 5S, thereby giving consumer very little reason to choose the 5C over the 5S.
The two iPhones will be coming to Indian stores on November 1st. You can find details about pricing here. Analysts believe that the iPhone 5C will be a huge flop. Scroll down to the slider below to understand why.
No Masculine Colors
No Masculine Colors
While the ladies will love the iPhone 5C's color schemes, most men would never consider owning the handset. Have a look at the color options. Indian men are going to have to pick from a pretty pink, a little-too-light yellow, a very soft blue and a green that's bound to win over fans of Dora The Explorer.
Apple's products have been largely famous because they've always been the best ones in the market. Apart from the powerful feature set, consumers in India buy iPhones as the handsets serve as powerful symbols of prestige and luxury. In the past, when you owned an iPhone, it was a given that you had the best cell phone amongst your peers. However, with the iPhone 5C, you're getting the second best product. Now why would the Indian consumer shell out close to half a lakh rupees for second best?
While the new iPhone 5S has some powerful new hardware, security features and improved design, the iPhone 5C is not very different from the older models. It offers nothing to owners of the iPhone 5, so why should they upgrade? While the iPhone 5C might appeal to users of the iPhone 4 , it will not even be considered by iPhone 4S and 5 users.
While Apple has given the iPhone 5C a premium price tag (Rs. 42,000 for the 16GB version), but has failed to give the handset a fitting premium build. The phone uses an inferior plastic build, something that goes against the iPhone's design mantra when compared to previous models. So why would the Indian consumer pay Rs.42,000 for a plastic phone, when he can get the exact same thing in metal (the iPhone 5 which has all the same features and components, packed into a metal body). Indian retailers have ample stocks of the iPhone 5, so the old phone might just cannibalize into the sales of the new one.
If Apple had priced the iPhone 5C at around Rs. 20,000 or Rs. 30,000, it would have made for a sensible buy. However, at Rs.42,000, the iPhone 5C is only slightly cheaper than the 5S (16GB variant), which retails at Rs. 53,000. And since the vast majority of Apple's fans don't mind spending heavy on handsets, they would surely opt for the iPhone 5S over the 5C.