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The iPhone 5c is a Failure? Not So Quick!

| 14-Sep-2014 |

You’ve probably heard it more than a few times, as it’s a popular refrain here in the tech industry: Apple’s iPhone 5c was a total failure. It’s a narrative that, for whatever reason, has failed to lose traction since the “budget” iPhone model was introduced a little over a year ago. Although I disagree with it, there may be a grain of truth to it. The 5c model has, after all, not sold as well as Apple’s other iPhone models. But, I think looking at the whole situation this narrowly really missed the point of the model in the first place. And, Apple still managed to sell over 24 million of them, which isn’t a figure to be scoffed at.

iPhone 5c

Is iphone 5c really worth the price?

Of course, the argument that the iPhone 5c is a failure centers on the fact that it’s a budget model, and that, because of this, it should’ve sold better. But, is the iPhone 5c really a budget model? I’d argue that it is a budget model, but not necessarily for the consumer. Instead, it’s a way for Apple to get its product out into the hands of consumers in a way that has a greater profit margin. The flagship iPhones, by the nature of their design and the components, have much slimmer profit margins. The 5c model, with its plastic backing, is much cheaper to produce.

Because of this, every iPhone 5c that Apple sells accomplishes two things. One, it increases the overall profit margin for the iPhone line in total. But, more than that, it expands the customer base for the iPhone. And the thing about iPhones is this. It’s not the device that’s important; it’s the App Store. By expanding their customer base through the “cheaper” iPhone model, Apple was able to bring in a whole host of customers who might not have otherwise jumped to the iOS platform. Those customers will, in turn, make purchases on the Apple App Store, which is what the company really wants in the first place, because that’s where it really makes its money.

iPhone-5C1

So the iPhone 5c is a failure? I think not.

#iphone5c #ios8 #iphoneapps #ipad #mobileapps #appdeveloper


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