Reports have been circulating that Apple is reducing orders for the budget sibling of the iPhone 5s, the iPhone 5c, due to weak demand.
As a result, speculation is rife that the budget iPhone 5c may not have been a smart move by Apple after all. With debates raging over why the iPhone 5c could be a bad mistake on Apple's part, we take a look at the factors that have possibly contributed to the smartphone's low appeal.
1. Pricing
Purchasing an unlocked 16GB variant of the iPhone 5c costs $549, whereas the 16GB iPhone 5s will set consumers back by $649. With just a difference of $100 between the two, why would consumers opt for a lower-end model when they can have the top-end phone by paying slightly more?
The steep pricing of the unsubsidized/unlocked iPhone 5c, especially when compared to sibling iPhone 5s would undoubtedly put off a lot off buyers.
2. Old wine new bottle
The iPhone 5c is a new handset, yet it does not offer anything novel to users. It is essentially the iPhone 5 in a new polycarbonate shell instead of an aluminum one. While the iPhone 5c would be an upgrade for anyone who owns a non-Retina display Apple smartphone, owners of the iPhone 4s or iPhone 5 don't see much of an upgrade. New color options cannot be the only thing the smartphone can ride on if it does not pack any hardware changes under the hood.
3) Color options
Apple chose to emulate Nokia's popular Lumia line-up of smartphones by introducing vibrant colors for the iPhone 5c, which is available in an assortment of pastel hues like pink, yellow, white, blue, and green.
However, while the color palette for the iPhone 5c is extensive, there are no staid hues like black or grey for consumers to choose from, especially given the popularity of black. This factor may possibly have deterred several customers from purchasing the iPhone 5c. Perhaps, if Apple had introduced gold, silver and red options (considering its popularity in Apple's target market China), the iPhone 5c may have been able to make inroads in developing markets at which it is primarily targeted.
Additionally, the introduction of two smartphones side-by-side may have divided loyalties and customers could be torn between the two handsets i.e. iPhone 5c and iPhone 5s. On the other hand, if Apple had released only one smartphone, customers would have only gravitated towards that solely.
Consumers being drawn more towards the high-end iPhone 5s suggests that they chose to opt for what is the advanced product.
However, it is early days yet to label the iPhone 5c a terrible mistake. With the holiday season round the corner, the sales could pick up.
As analyst Benedict Evans notes, "people really ought to have learned that supply chain production volume rumours for iPhones are worthless. The 5c could be a total flop but supply chain rumours wouldn't tell us either way. Too many variables."
