Why the iPhone 5C makes perfect sense

Apple is doomed. Apple doesn’t understand smartphone markets. The iPhone 5C is grossly overpriced. The iPhone 5C is a failure. These are some of the sentiments being echoed in the media and social networks like Twitter and Facebook. I’m just surprised that #RIPApple isn’t trending on Twitter, yet. But it is business as usual for Apple. Nothing has changed for them and they are still looking forward to a sellout 24 hours of preorders on September 13 and probably a record first weekend of sale on September 20.

The iPhone 5C isn’t the cheap iPhone we all envisioned it to be and it is certainly does not carry the “maximum $400 off-contract” price tag that we all conjured in our minds with an endless stream of media reports, rumors and market analyst reports. In the end, the iPhone 5C didn’t turn out to be the cheap iPhone, it is just a cheaper iPhone.

What many people are not realizing is that the iPhone 5C is not the stripped down iPhone with the processor from the iPhone 4, no Siri support and a lower resolution camera. The iPhone 5C is every bit the iPhone 5 and then some more. It has a bigger battery, a better FaceTime camera and comes with support for more LTE bands than the iPhone 5. It has better features the iPhone 5 and at the same time brings the price down by $100 for people who are still sitting on the fence. The iPhone 5C is a replacement of the iPhone 5 and it is certainly not targeted at people who already own an iPhone 5, for them Apple has the iPhone 5S. It isn’t meant for those with limited budgets looking for an entry-level iPhone either – for them Apple has the iPhone 4S.

Essentially, Apple is not ready to launch a cheap iPhone, yet. Its market share in the US is still growing and that’s where the iPhone 5C will probably become the best-selling iPhone ever that is available for $99 on a two-year contract. Apple is not willing to let go of its margins to cater to emerging markets. For Apple, it is not the market share that eventually counts but the profit share and the iPhone 5C lets them do that.

For a moment, stop thinking about what you were told about the iPhone 5C before yesterday and listen to what Apple is saying – the iPhone 5C is a better iPhone 5 variant and not a cheap iPhone.