Tim Cook: iPhone 5c Wasn't Meant to Be an Entry-Level Phone

iphone5c.jpg During its financial conference call today, Apple CEO Tim Cook shared a new perspective on the company's iPhone strategy.

Cook was asked questions about how Apple plans to address lower price segments of the smartphone market and where the iPhone 5c stands in the lineup. He stated that the iPhone 4s is now the entry-level iPhone contrary to the pre-launch belief that the iPhone 5c would be the entry-level device:

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 elaborated the philosophy of seeing the iPhone 4s as the entry level iPhone after discussing foreign device pricing strategy and why the company did not keep the iPhone 4 in its lineup given 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 geos.

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.

Apple sold a record 150 million iPhones in fiscal 2013, up 25 million units from 2012. The company has sold 421.3 million smartphones since the iPhone's launch in 2007.

Top Rated Comments

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88 months ago

IMHO they should have made the 5 free, then everyone would have the lightning cable and a 4 inch screen sooner.

Oh wait, they couldn't do that because they repackaged the 5 and called it a 5c.

Great product but stop scamming the consumer. I really don't like how they release new products and then remove the previous gen only to continue selling a 2 gen old product. They did it with the iPad as well.

They've never done that though.. When the 5 was the current gen, then the 4S was 100, and the 4 was free. All they did now was what they've always done, but instead of making the old model 100, they released a newer model with the older model's specs, in color, and with a better battery life. All they did this time around was MORE than they usually do for the customers.
Score: 19 Votes (Like | Disagree)
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88 months ago
Wasn't the best move keeping the 4S around. Yet another year before the 30 pin connector is killed.
Score: 19 Votes (Like | Disagree)
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88 months ago
Apple needs to stop selling outdated technology. They're selling the iPhone 4s and the iPad 2 which won't even be compatible with iOS 8 next year. Hell, the iPad 2 is barely compatible with iOS 7. It runs like crap.
Score: 16 Votes (Like | Disagree)
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88 months ago
"5c Wasn't Meant to Be an Entry-Level Phone", we just wanted it to look like one. ;)
Score: 14 Votes (Like | Disagree)
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88 months ago
So what's the deal next year? Will Apple sell the current 5c as the entry phone and then have a 5cs as the mid model with the the iPhone 6 as the high end model? Or will they pull an iPad 2 and claim that there's enough demand for the iPhone 4S to continue and complete the line up with a 5cs and iPhone 6.

For consumers, I believe it's best that the jump to both 64bit architecture and lighting connectors be completed. After that, we can go back to this model of selling 2 year old products.
Score: 14 Votes (Like | Disagree)
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88 months ago

If you look at the US as an example, the 4s is now free.


Yeah, free. :rolleyes:

Sure Timmy.

Not all consumers want to lock themselves into onerous 2-year contracts.
Score: 12 Votes (Like | Disagree)

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