Why Apple Felt The Need For iPhone 5C And How Does It Matter?

This year, Apple has undertaken the unusual step of launching two iPhone versions – iPhone 5S as well as iPhone 5C. Whereas iPhone 5S is the regular, top-end smartphone but iPhone 5C is the cheaper, low-end alternative. So why exactly did Apple divide its iPhone portfolio this year?

iPhone 5C

When it comes to iPhone 5S, Apple is also offering the handset in the gold-plated version. The gold-plated version will essentially turn out to be a status symbol, being offered at a whopping $399 together with the contract.

In contrast, there’s the iPhone 5C which features a plastic body and would cost a mere $99 with a two-year contract. If you wish to bag the handset without the contract, it would cost you $549. That is the truly surprising part. Apple seems to be pushing iPhone 5C as the cheaper, more affordable alternative to iPhone 5S, and yet it costs more than $500.

At the same time, Apple is killing iPhone 5 which means that if you really want an affordable smartphone, iPhone 5C remains the only sensible choice. But again, a plastic smartphone will again be pegged at a specific spot on the ladder of social status. In this way, both the gold-plated iPhone 5S as well as the iPhone 5C handsets turn out to be status symbols for the masses at large.

It remains to be seen how popular the low-end handset turns out to be in the U.S. market. In China, however, Apple expects to sell a bulk of iPhone 5C handsets, a trend which may prove true in many other developing markets too.

Courtesy: Business Insider

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