Tim Cook clarifies that the iPhone 5C is their “mid-tier” model
Apple's new iPhone 5c was expected to be an entry-level model with a cheaper price
Apple CEO Tim Cook makes things clear after today’s financial conference call. He clarifies that the new iPhone 5C is the company’s “mid-tier” model and that the iPhone 4S is their “entry-level model”.
Consumers were very disappointed with the iPhone 5C’s pricing. They deem it too expensive. Cook also adds that it was never intended to be an entry-level model.
“If you look at what we’ve done, we’re selling the iPhone 4s as our entry offer. We sell the iPhone 5c as the mid-tier and the 5s. Our goal is to have growth across the iPhone but we want each of those categories to grow as compared to what we were doing previously. If you look at the total that we’re making in the low end and mid tier and high end, the sum there, we’d like to grow in each one of those. We’re really please that we did that.”
Cook also mentions why he sees the iPhone 4S as their entry-level smartphone and why they didn’t keep the iPhone 4 in their current lineup despite its sales success.
“What we did with our lineup this time was the 4s is replacing the 4. If you look at the US as an example, the 4s is now free. The 4 was free previously. When you translate that out of the US, it depends on the market as to what specifically happens. Currency changes and the strength of the dollar doesn’t always play in our favor in some goes.
We see the 4s as our entry iPhone offer that gives somebody the ability to access the entire ecosystem as a fantastic product. We understand that there is elasticity in that market and it will move accordingly.”
The iPhone 5C’s 16GB model costs $99, while the 32GB goes for $199, bundled with a wireless service plan, while the unlocked 16GB and 32GB model costs $549 and $649, respectively.View Article Source »