Rumor: Apple iPhone 5C with 8 GB to launch Tuesday - Will it help sales?

So far, the iPhone 5C has failed miserably to attract the budget smartphone crowd. Most customers believe that the 5C is overpriced and prefer to buy the high-end iPhone 5S for just $100 more. Apple has all but admitted that the 5C is a flop, but now a new report hints that the company may offer an 8 GB iPhone 5C at a lower price starting Tuesday.

The report from stadt-bremerhaven.de references an internal email from German carrier O2, which states that the official launch of the 8 GB iPhone 5C will be Tuesday March 18 at 8 a.m. in Germany. The email adds that the devices will be delivered to O2 stores on Monday March 17. At first, the 8 GB version will only be available in white and blue, says the email, but it is assumed that more colors will be forthcoming. The email also includes a strict warning that no one at O2 is to show the devices or their packaging to anyone else prior to the official launch.

O2 will reportedly sell the new 8 GB version of the iPhone 5C for €509, which is €60 less than the current price of the entry-level 16 GB iPhone 5C O2 currently offers for €569. It is unknown if both the 16 GB and 32 GB versions of the iPhone 5C will get an additional price drop, but the odds are against it. After all, Apple isn't a fan of discounts.

The new 8 GB version of the iPhone 5C will have all the same specifications as it did at launch, but the built-in storage will be halved. The new iPhone 5C will feature the same A6 processor, 4-inch retina display and 8-megapixel back camera.

It is unknown if Apple's alleged decision to offer an 8 GB version of the struggling iPhone 5C will hurt iPhone 4S sales, seeing as it is the only other iPhone that comes in an 8 GB option. Of course, to hurt iPhone 4S sales, the 8 GB iPhone 5C would have to appeal to customers in the first place. Even if the 8 GB iPhone 5C becomes a reality on Tuesday, it is still unlikely to appeal to hard-core Apple fans. Most iFanatics want the latest and the greatest iPhone, not the plastic iPhone 5C with just 8 GB of storage onboard.

If customers want a budget smartphone, the iPhone 5C is not for them. It's still going to be too expensive for what it is. You can get a Nexus 5 smartphone from Google with 16 GB of storage, a processor that is more than the A6's equal and an 8-megapixel camera of basically the same quality as the one on the iPhone 5C for basically half the price at $349.

The iPhone 5C's problem is not that it has too much storage, it's that the 5C isn't cheap enough.

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