US Retailers Cut The iPhone 5C Price in Half
Image Courtesy of team8ab
When the iPhone 5C was released on the 20th of September, the colorful smartphone was initially offered by mobile carriers for $99, subsidized by a two-year contract. This is apart from Apple’s contract-free handset for a hefty cost of $549. However, Walmart and Best Buy were reported to slash the iPhone 5C pricing to $45 for the same two-year network agreement. Given this scenario, is Apple trying to lure the mobile consumers by making the 5C a true “cheaper” iDevice?
A Holiday Season Sale
Mashable reported that, in the first week of sale, both the 5C and 5S model sold a favorable figure of 9 million handsets. So, what’s causing Apple to allow this sudden price drop? Walmart reiterated that this cheaper deal will only last throughout the holiday shopping season. There’s no further announcement if it will retain the original cost afterwards. The Best Buy store, on the other hand, also offered the same 50% subsidized discount, but only for a week (October 3-7). But, it’s still surprising that the discount was offered so soon, just two weeks after the device was launched. In the past, the value of the 4S and the iPhone 5 depreciated only after 6 months.
Limited To The US Market At This Point
The 50% discount in 5C’s subsidized pricing is only limited to the US Market as of the moment. In the UK, the gadget’s pricing still depends on the mobile carriers’ tariff. The upfront payment for the handset depends on the service and length of contract that consumers avail. Based on the iPhone 5C on O2 page, the 16GB version of the smartphone is offered by the network provider for £29.99 ($48.12) for a two-year contract with £20.00 ($33.00) monthly tariff. Telifonica’s O2 gives the device free for higher monthly tariffs.
What The Analysts Are Saying
Wall Street Analysts were rather bemused that the supposedly cheaper alternative to the flagship 5S wasn’t exactly cheap. According to the 2013 Marketwatch report, despite the effort of selling the iDevice for $45, the original non-contract tag ($549) is still too expensive. “We worry that Apple’s inability/unwillingness to come out with a low-priced offering for emerging markets nearly ensures that the company will continue to be an overall share loser in the smartphone market until it chooses to address the low end,” addressed by Sanford Bernstein, Wall Street spokesperson.
What Apple Should Address
While these sales make the 5C a more appealing option compared to the 5S, Apple does not address the primary complaint of the consumers at the $549 off-contract pricing. Not everyone wants to sign-up for a two-year network contract, especially if they are still engaged in an existing plan. Plus, the features and specifications are the same as its predecessor that was released last year. The Cupertino Company should make the 5C’s discrepancy with the 5S more significant. With the 5S, users get to enjoy the upgraded 64-bit A7 CPU, a better mobile camera with Truetone Flash, and the infamous Touch ID fingerprint sensor. It’s a more premium choice for only $100 more.
What do you think of the iPhone 5C? As a mobile consumer, will you purchase the device and take advantage of the bargain, or you prefer to consider the 5S instead?
About the Author
Taylor Jennings is a British tech blogger and a regular contributor for Techie Doodlers. He’s enthusiastic about the latest trends and inventions on the mobile industry like the ones being developed by O2’s creative solutions. As a writer, he covers gadget reviews, market analysis, iOS and Android news, and innovations in the world of eCommerce. Connect with Taylor on his Twitter page @taylorj427.
