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8 GB iPhone 5c Intended to Boost Mid-Tier Markets Where LTE Is Growing
With today's launch of a new 8 GB iPhone 5c, much discussion has been centered around the observation that the new model is available in only a handful of countries: the UK, France, Germany, Australia, and China. In a statement to Re/code, Apple reveals that its strategy is to offer a lower-cost option that is compatible with LTE networks in countries where those networks are seeing rapid growth.
The report notes that Apple may prefer not to sell the 8 GB iPhone 5c in the United States because of the popularity of subsidized phones, which sees the 16 GB model being offered for $99 or even less on a two-year contract. There are, however, plenty of other countries where subsidies are not common and where Apple has elected not to offer the new 8 GB model. The business model is even changing in the United States, where T-Mobile has led a charge to decouple device pricing from service plans. Under the new models, carriers are offering interest-free payment plans on devices and charging users separately for their service.
“The mid-tier iPhone segment is growing year-over-year and the 8GB model provides a more affordable option for markets where LTE is becoming more established,” an Apple representative told Re/code. The iPhone 5c, unlike the iPhone 4s, which is also still sold, supports LTE networks.
The report notes that Apple may prefer not to sell the 8 GB iPhone 5c in the United States because of the popularity of subsidized phones, which sees the 16 GB model being offered for $99 or even less on a two-year contract. There are, however, plenty of other countries where subsidies are not common and where Apple has elected not to offer the new 8 GB model. The business model is even changing in the United States, where T-Mobile has led a charge to decouple device pricing from service plans. Under the new models, carriers are offering interest-free payment plans on devices and charging users separately for their service.
[ 114 comments ]
Top Rated Comments
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75 months ago
Dropping the price to £349 where the 4S is and ditching the 4S would be the best move.
75 months ago
If anyone posts that "Can't innovate anymore my a$$" comment one more time I'll punch you so hard that Chuck Norris would be impressed.
75 months ago
I get that Apple can charge lots for memory upgrades. Don't like it, but I get it.
But, why would they sell a phone with only 8gb? The cost to put in 8 vs 16gb can not be much money at all. But you now have a phone that will piss people off when they run into memory issues, and they get mad at Apple.
I just do not get it.
But, why would they sell a phone with only 8gb? The cost to put in 8 vs 16gb can not be much money at all. But you now have a phone that will piss people off when they run into memory issues, and they get mad at Apple.
I just do not get it.
75 months ago
Cuz you know .. memory is so expensive! :rolleyes::apple:
Yes, and extra memory would stick out of iPhone's side :D
75 months ago
At £429, it's only £40 cheaper than the 16GB iPhone 5C.
That's $710 to our American friends.
That's $710 to our American friends.
75 months ago
the best thing from Apple's announcement is Nokia's reaction on Twitter :D
(http://img.clubic.com/07242472-photo-tweet-nokia.jpg)
(http://img.clubic.com/07242472-photo-tweet-nokia.jpg)
75 months ago
If anyone posts that "Can't innovate anymore my a$$" comment one more time I'll punch you so hard that Chuck Norris would be impressed.
75 months ago
At £429, it's only £40 cheaper than the 16GB iPhone 5C.
That's $710 to our American friends.
Not quite, we always pay way more £s than a straight currency conversion for Apple products. Import tax, VAT and mandatory 2 year warranty sees to that.
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