CEO says Apple never meant it to be a cheap phone, despite initial buzz. October 28, 2013 2:54 PM PDT Apple designed custom covers for the 5C made of silicone with a microfiber lining, with cutouts to show off your phone's true color. The cases come in red, yellow, green, blue, black, and white. (Credit: Josh Lowensohn/CNET) Investors wanted to know Monday how the iPhone 5C helps Apple reach new, budget-conscious markets, but it according to CEO Tim Cook, it probably won't. In response to questions about the iPhone 5C's price and the colorful phone's sales in "cost-sensitive countries" during the company's fourth quarter earnings call, Cook said the the iPhone 5C was never meant to be a budget phone. "That was never our intent, honestly. Our entry iPhone is the iPhone 4S," he said, deflecting the questions about iPhone 5c sales. The iPhone 5C is meant to be a mid-level phone, he said. He said the iPhone 4 did well as Apple's previous budget phone, and the company is hoping to see the same with the iPhone 4S. Initially pitched as Apple's more affordable model, the iPhone 5C, isn't really wallet-friendly. Consumers pay $99 for the 16GB model with a two-year service contract, and $549 without the contract subsidy. The expectation was that the cheaper model would help Apple in markets with more budget-conscious consumers like China or Russia, but the impression so far/until now was it was still too pricey. Related stories iPhone 5S, 5C account for 5.5% of all iPhone activations 10 reasons why you should ignore tech posts that begin with '10 reasons why' Moga's iPhone game controller emerges In China, Apple has competition in the form of Xiaomi, a Chinese company that has been selling smartphones -- for less than an iPhone costs -- like hotcakes. Apparently the iPhone 5C can't compete with its more expensive counterpart, the iPhone 5S. A recent study estimated that the two models account for for 5.5 percent of all iPhone activations, but the iPhone 5S is the more popular of the two. For all models, Apple reported that it sold a total of 33.8 million iPhones in the third quarter of 2013.
CEO says Apple never meant it to be a cheap phone, despite initial buzz.
Apple designed custom covers for the 5C made of silicone with a microfiber lining, with cutouts to show off your phone's true color. The cases come in red, yellow, green, blue, black, and white.
(Credit: Josh Lowensohn/CNET)
Investors wanted to know Monday how the iPhone 5C helps Apple reach new, budget-conscious markets, but it according to CEO Tim Cook, it probably won't.
In response to questions about the iPhone 5C's price and the colorful phone's sales in "cost-sensitive countries" during the company's fourth quarter earnings call, Cook said the the iPhone 5C was never meant to be a budget phone.
"That was never our intent, honestly. Our entry iPhone is the iPhone 4S," he said, deflecting the questions about iPhone 5c sales. The iPhone 5C is meant to be a mid-level phone, he said.
He said the iPhone 4 did well as Apple's previous budget phone, and the company is hoping to see the same with the iPhone 4S.
Initially pitched as Apple's more affordable model, the iPhone 5C, isn't really wallet-friendly. Consumers pay $99 for the 16GB model with a two-year service contract, and $549 without the contract subsidy. The expectation was that the cheaper model would help Apple in markets with more budget-conscious consumers like China or Russia, but the impression so far/until now was it was still too pricey.
Related stories
- iPhone 5S, 5C account for 5.5% of all iPhone activations
- 10 reasons why you should ignore tech posts that begin with '10 reasons why'
- Moga's iPhone game controller emerges
In China, Apple has competition in the form of Xiaomi, a Chinese company that has been selling smartphones -- for less than an iPhone costs -- like hotcakes.
Apparently the iPhone 5C can't compete with its more expensive counterpart, the iPhone 5S. A recent study estimated that the two models account for for 5.5 percent of all iPhone activations, but the iPhone 5S is the more popular of the two.
For all models, Apple reported that it sold a total of 33.8 million iPhones in the third quarter of 2013.
