iPhone 5C Competes For Budget Android Customer

The new budget iPhone 5C has started a spur among loyal Apple users about Apple creating only premium products in the past, and how it should probably stay that way. In spite of the premium class products, Apple could not deny the demand for a budget phone after Android and Windows Phone devices took over the market. They do more or less the same job for a lot less money.

Apple iPhone 5C competes with other Android Smartphones

The new iPhone 5C costs $99 for the 16GB model and $199 for the 32GB model on contract. First and foremost, Apple is now providing a slightly cheaper iPhone for emerging markets like India and China. It is cheaper for Apple to manufacture the phones at $733 (as compared to $850 for the iPhone 5). Cost saving might be the motivation behind the iPhone 5C, which makes it cheaper for customers to buy the phone.

India and China acquire 80% of the global Android Smartphone market share, and now Apple is looking to make an impact in this segment. Now, will this strategy be effective in such large mass?

Off contract, these phones cost $549. In terms of China, this converts in approximately 3359.88 Yuan, which is the average monthly salary in the country according to the latest report by the United Nations International Labor Organization (ILO). In other words, buying an iPhone 5C for an average Chinese citizen would be quite similar to an American going to buy a somewhat cheap second car for around $5000-$10000 in the U.S.A. The same applies to India as well, where $549 converts to Rs.35048, which is around the average man’s salary in the country.

According to a recent survey by Upstream, most of the customers in the emerging markets are willing to pay only $100 or less for a Smartphone. Only 15% would be willing to pay above $450. This means that if Apple is really looking to make their product more viable in the emerging markets globally, then they might have to take a very strong turn.

More news on iPhone 5C will be available in Topmobiletrends.

Jorge Terry

Jorge Terry