At Apple’s product unveiling this past Tuesday, the company announced that it will finally be introducing a new budget friendly iPhone called the “iPhone 5C.” The iPhone 5C will be encased in plastic rather than the normal metal casing and will come in a variety of colors. To countries outside the United States this is a dream come true as many cellular companies nationwide do not offer plans that are subsidized with customer agreements and contracts.
Although the idea of introducing a cheaper version of the iPhone seems like an extremely great idea, there are many people that feel as though this has been a horrible PR mistake made by Apple. One might ask, “Why in the world would it be a bad thing for them to introduce a phone that more people can buy?” With more sales, that means more revenue, which means more success for the company…right?
Well, some people are arguing that by introducing a “lower-end product” into a brand that has been praised for their notoriously “high- end” electronics, will only lead to negativity. If a formerly exclusive product becomes available to all consumers, why would a potential buyer want to buy something that now everyone can afford?
This idea of consumer uncertainty can be compared to that of a fashion luxury brand. For instance, brands such as Gucci, Louis Vuitton, and Chanel are brands that are known for their luxury products, which are notoriously priced beyond the means of many people. But, even these brands have introduced products and lines that can be purchased by a new clientele who wouldn’t normally be able to buy their products.
With the introduction of new budget friendly products from luxury brands such as those listed above, it allows for more people to buy their products which is fantastic, but it also decreases the appeal for many consumers to buy their products. This decrease in appeal occurs because these products are no longer exclusive, and just about anyone can buy them.
So, the question that we need to ask ourselves is, “will the introduction of the budget-friendly iPhone 5C benefit Apple, or will it bring consumers to question the quality of all future apple products?” Will apple continue to be known as one of the top luxury electronic brands, or will it become just another generic household electronic brand?
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Thoughts:
1) I wonder if some of the sociological ramifications-starting with bourgeoise sectors-include behavioral modifications, peer pressure or power assertions based on status driven by having an 5s or a 5c. I can imagine the article: “Are you an S or a C” …as well as comedic (or other type of) dialectic derivations and slang from such punch line.
2) The world is keeping an eye on how many customers they increase in China in the 1Q2014. Now that they have split it into two models, do you think that S and C will have newer versions in 6 months? i.e. 6S and 6C?
3) Didn’t the creative community stop being Apple’s primary market a while ago? …confesses the guy who switched after 3 Androids, 2 Rokus, and 6 PC’s.
I believe the iPhone 5C was a big money move. In theory, if they have more product available to customers at various price points, they could make a larger profit. However, like you say, the Apple brand is being diluted by giving everyone a chance to buy in. I’m really sad for apple because I am just now jumping on the bandwagon and the products are already being made for a wider market. I want my exclusivity back please!!
Ashley,
I couldn’t agree with you more regarding the fact that you would like your exclusivity back. It seems like I got the iPhone 4 only a couple of months ago and it is already considered “old.” It is not only the fact that the Apple products are going out of date so quickly that bothers me, but more importantly the fact that everyone has them.
I have to admit that my niece, who is six years old, knows how to work Apple products better than I can.
In the beginning of the “Apple boom” you paid a hefty price for exclusivity, and now they want you to pay that hefty price again. But, my whole thought is, are the Apple products ever going to be exclusive again? Unless you are constantly buying the newest model of their “high – end” product, (and it seems like they’re introducing something new about every 5 minutes) then you’re already behind.
Is the iPhone 5C for those people like myself, that are “behind” on the buying trend, and will this new budget friendly iPhone anger consumers who paid handsomely for their 4 & 4s models?
This is a really interesting point that I hadn’t thought much about. It will be interesting to see if the iPhone loses its exclusivity by releasing the iPhone 5C. While there are people that value the iPhone because it is exclusive, I wonder if the people who care less about its exclusivity and more about the phones standard features will start buying the iPhone 5C because of its price rather than upgrade to the 5S. This will be an interesting year to see what happens with Apple.