The Pros and Cons of iPhone 5c

(NB: posted this while incomplete and deleted the post. This is the finished post)

I know this is 3 days late, but I'd like to discuss the iPhone 5c.

To begin with, there are the pros:

  • The models serve as a strategy to drive consumers towards the higher end model which is only $100 more expensive. They cannot differentiate it if the outer casing is the same, hence the plastic iPhone 5c.
  • Producing two models is likely to increase sales due to consumers having more choice (i.e. colours) while still enjoying quality products.

But then comes the cons:

  • People expect this to be a budget phone, but it's more of a refurbished version of the iPhone 5, so they will automatically feel 'ripped off'. Of course this is not Apple's fault, but ours and the media's expectations, and the perception that plastic has to be cheap.
  • Someone said this before, but if Apple were to lower the price, it would hurt their profit margins and worsen their stocks. If they didn't, it wouldn't still worsen their stocks, as seen following the Apple event.

Do you think that Apple should have done this? If you were Apple, what would you do?