Is there a lesson for Apple to learn from the iPhone 5C?
Is the general consensus yet that the iPhone 5C was a failure? Personally, I think Apple completely bungled the iPhone 5C launch, misunderstood their consumers, and even got a little greedy. Reports today suggest that Foxconn will stop producing 5Cs in their Northern China factory, and Pegatron is literally down to making 6-8 thousand units a day. I personally think Apple made the following mistakes:
1) They thought the average consumer wouldn't care about the latest and the greatest, and that while the iPhone 5S might get huge launch day sales, the iPhone 5C would ultimately win the long race. It didn't work out this way! The iPhone 5S is still not meeting demand, yet Apple has so many iPhone 5Cs in stock, they are telling their plants to make less of them or stop making them at all! This shows that consumers do in fact want the latest and the greatest.
2) The price was out of whack: Analysts and journalists thought that the iPhone 5C was going to be some sort of "cheap" iPhone, selling for about $300 off contract. This didn't turn out to be the case when Apple priced it only $100 lower than it's flagship iPhone 5S. So it is quite possible that people WANT a cheap iPhone, but the iPhone 5C wasn't that phone!
3) Too much advertising: Apple poured way too much advertising into the iPhone 5C, and very little into the iPhone 5S. In hindsight, this was a bad move because the real star turned out to be the iPhone 5S. Not to mention, that "Mr. Mojito" advertisement was just plain terrible! Cringeworthy!
4) Apple thought that consumers would not care if they simply repackaged the iPhone 5 into a new shell: It turns out, consumers are not that stupid. Some didn't care, but the vast majority figured "for $100 more, I get the latest and the greatest!"
5) Greed: I KNOW I'm going to get flamed for this one...but I think ultimately, Apple got greedy. The purpose of the iPhone 5C was to raise their margins by lowering manufacturing costs on the iPhone 5 while keeping the $100-less tiered pricing. What they forgot to do, was make a great device, that people would really want. I think if they dropped the price of the iPhone 5 by $100, as they had done before, they would have sold MORE iPhone 5 phones for $100 than the "new" iPhone 5C for $100.