Yesterday's rumor that Apple planned to release an 8GB iPhone 5C on Tuesday actually proved true. Shipments of cheaper iPhone 5Cs will be available in France, Germany, the U.K., Australia and China. However, the 8GB iPhone 5C will not be making its way to the U.S. - period, end of sentence.
Why, you may ask? Well, it's simple really. The reason why the iPhone 5C didn't sell well in the United States is not just because it's too expensive or didn't come in an 8 GB option. Although those reasons were big factors that contributed to the iPhone 5C's dismal performance, they weren't the whole story.
The 5C didn't sell well because chances are, if you live in the U.S. and you really want an iPhone, chances are you're going to want the latest and greatest iPhone - the iPhone 5S. Apple devices carry a certain amount of prestige because of the brand, the elite build quality and trademark design. The iPhone 5C features a plastic casing and wildly bright colors, which only appeal to a select group of customers. When it comes down to a difference of $100, most Americans chose to go with the iPhone 5S instead of the 5C.
Additionally, when you consider that an 8GB iPhone 5C only costs about $50 to $70 less than the 16GB version, that price drop really doesn't give customers much incentive to choose the 8GB 5C over a 16 GB 5S.
Those who are tech savvy are even more likely to choose the 5S, simply because it has super high-end specifications, including a fingerprint sensor, while the 5C has last year's specifications and an average build quality to boot. Also, most people nowadays consider at least 16GB of storage a given, so 8GB of storage would not go over too well in the U.S.
Although these statements are true for most Apple customers in most markets, customers in Europe, China and Australia are slightly more likely to consider buying an 8GB iPhone 5C. In some cases, it's not a bad deal. The price reduction could help save iPhone 5C sales in China, which have been very slow.
According to the Wall Street Journal, the 8GB iPhone 5C will cost 4,088 yuan ($660) unsubsidized in China, which is a decent deal in comparison with the 4,488 yuan ($725) you'd pay for the 16GB version. In the U.K., the 8GB iPhone 5C will carry a price tag of 429 pounds ($711) unsubsidized, as opposed to the 469 pounds ($778) a 16GB version costs.
These prices may convince customers in those markets to give the 5C a chance, but in the U.S., the demand would simply be too low. Now would also be a very bad time for a new iPhone 5C to arrive in the U.S., as reports indicate that the iPhone 6 will soon head into production. All eyes are on the iPhone 6, as many hope to see Apple release it's first 4-inch-plus iPhone ever. The rumors and concept designs are already heating up big time.
