iPhone 5C Predictions
I'm curious of your opinions of what Apple will do with the 5C tomorrow. I don't think Apple's going to give the same functionality of the 5S in a plastic body, then cut the price. Apple usually protects it's high end devices from being canibalized.
If they want to have another phone priced with a contract, it doesn't make much sense to do one $100 cheaper than the $200 5S. I'd think if they went through the effort, they'd want to hit a price point of $50 or free. But if they do this they have to reduce some functionality with a much lower res camera or display to make people think twice before picking it over the regular iPhone.
The other option is offering it off contract. Here, they obviously have to price it below $650 (5S), but to make it worth the effort the price would need to be at least $150 cheaper. This is $500 which is still pretty expensive. With this route, I think they also need lower priced plans from ATT/Verizon to avoid customer confusion. The average customer's going to think, "If I'm going to pay for the contract for two years, I might as well get the cheaper one (5S)."
The main reason people will want it over the 4/4S is the larger screen and LTE. My gut's telling me they're going to keep offering those and fit this into some new category.
I hope you followed this. How do you think the 5C will be positioned?