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‘Cheap’ iPhone 5C is Too Pricey to Lose Out Market Apple announced to launch iPhone 5C and 5S in China today. It just simply and fast introduced the two new products and showing off its iOS 7 in the whole news conference. It didn’t bring any surprises for customers. Apple really has launched iPhone 5C as expected, but it is not the cheap version. The letter C stands for colorful not cheap. The new plastic-backed iPhone 5C will sell for 4,488 RMB, almost $200 more than the United States retail price of $549 and only 800 RMB less than its top-of-the-line sibling, the 5S. As always, Apple is the leader of innovation. But today, it wants to attract customers only by the changing color and upgrading hardware, will it continue to be hot? The boring hardware upgrades According to iPhone 5 and iPad (third and fourth generation), we know Apple’s surprises for fans are just the boring hardware upgrades. Today’s announcement is the same disappointing. The new point for 5C and 5S is still hardware upgrades except the color changes.. The “surprises” of iPhone 5C For iPhone 5C, all customers say, it is just an iPhone 5 with a plastic back. They have almost the same configurations. Importantly, this ‘cheap’ iPhone is not cheap. Which market will iPhone 5C aim to? Whom will iPhone 5C be sold to? Lose out the market share Apple needs to sell more devices in places like China, but the iPhone 5C isn't exactly cheap, particularly in a country where the majority of smart phone users don't have contracts. Apple needs the China market, but it may find it tough to compete with devices from Chinese companies or even some of the cheaper phones from Samsung, which currently is China's biggest smart phone vendor. Even though Apple has a lower end iPhone now, its price is still considered mid-end in China and not low-end. Around half of China's smart phone shipments are in the 700-1,500 RMB range, but competing on those prices isn't an attractive prospect for Apple. Where the 5C could help is by giving buyers the chance for a less expensive phone that's still brand new. If they want something even lower priced, there's the 4S. But just like 5C pricing is still too high for many people, so is the 4S. Considering Apple's old rival Samsung and domestic players such as Huawei, Lenovo and Coolpad all have phones in category, what is more, the mobile phone and related electronic products in the domestic market are more and more mature, Apple will still lose out in market share in these key segments.
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