Apple Inc. (AAPL) iPhone 5C Is Not As ‘Cheap’ As Was Expected

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Apple Inc. (NASDAQ:AAPL);s iPhone 5C, revealed yesterday, replaces the iPhone 5 in Apple’s handset roster, and is almost similar in features to the 5S, except for the fact that it has a plastic body and comes in varied colors. However, a report from TheRegister by Neil McAllister says the price is hardly “the rock-bottom,” that many were expecting for an entry-level phone.

Apple Inc. (AAPL) iPhone 5C Is Not As ‘Cheap’ As Was Expected

The author believes that the price of iPhone 5C may impact Apple’s expansion plans in emerging markets.

iPhone 5C almost similar to iPhone 5

Similar to the iPhone 5, the iPhone 5C is also based on Apple’s A6 SoC, however, whether or not there are any performance upgrades is still a mystery. Apple marketing head Phil Schiller did mention that the 5C has “console-level graphics” but what this means is also a mystery. The iPhone 5C will also be available in 16GB and 32GB while a 62 GB model has not been announced.

Specification wise, the device has a 4 inch Retina display with 1136-by-640 resolution at 326ppi. Brightness and contrast are similar to that of the previous model. The new version has a 8MP iSight camera and a 1.2MP FaceTime camera, with slight enhancements over the earlier version.

Overall, it can be said that the iPhone 5C is a plastic version of the iPhone 5, and the same is evident from the cost. With a two year contract, the price has been fixed at $99 for 16GB model and $199 for 32 GB version. The offered price is not significantly lower to what has been offered by many big retailers for the iPhone 5 lately.

According to Apple Inc. (NASDAQ:AAPL)’s website, the unlocked version without a contract is $549 for 16Gb and $649 for 32 GB.

iPhone 5C may not be a game changer for Apple

The pricing may seem reasonable for a modern smartphone, but for budget-conscious consumers the price may not evoke much interest. These users may prefer low-cost Android devices or even low-end Nokia Lumia handsets.

Apple Inc. (NASDAQ:AAPL) is discontinuing the sales of the old iPhone 5 while still keeping the 8GB iPhone 4S around, indicating that the Cupertino, California firm is now targeting the low end of the market. Apple Inc. (NASDAQ:AAPL) will now offer the iPhone 4S for free with a two-year contract. Despite all this, the iPhone 5C may not be the game changer we were thinking it could be.

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