The fate of the iPhone 5c: Born in glory, died in greatness.

by anonymous on 2013-11-16 14:20:35

Alright, all three of Apple's big events this year are over, and we should take a break. But no, the end of one journey is the beginning of another. Starting now, we need to start guessing about next year's Apple event.

To evaluate this year's phone of the year, I would definitely vote for the iPhone 5c. This phone garnered massive attention before its release, even overshadowing the iPhone 5s. However, after its release, it sparked much criticism. The high pricing strategy in China was widely condemned, followed by an unprecedented price drop within a month after its release, which was rare in Apple's product history.

Taking JD.com as an example, the iPhone 5 (16GB), which has the same configuration but a different shell than the iPhone 5c, currently costs 4688 yuan, while the iPhone 5c is priced at 3998 yuan. More ironically, the iPhone 4S, which launched two years ago, is priced at 3948 yuan, almost the same as the iPhone 5c, which has a higher configuration and screen quality. On Taobao, you can even get it for just over 3000 yuan.

In the meantime, reports surfaced that the sales of the iPhone 5c were underwhelming, leading to order cuts. From being rumored as a "cheap" iPhone before its release, to a high-priced 4488 yuan, and then a price drop, the first half of the iPhone 5c's life was tumultuous. But ultimately, its fate aligns with the rumors—it became a "cheap" iPhone in reality. After experiencing significant ups and downs, the iPhone 5c finally returned to a normal trajectory.

From activation numbers, with the price drop trend, the gap between the iPhone 5c and the iPhone 5s is gradually narrowing, returning to an understandable range. After all, the iPhone 5s is Apple's darling. Another awkward phenomenon is that it seems like there are iPhone 5c advertisements everywhere in the city, with their flashy multi-colored designs. Regarding the pricing strategy of the iPhone 5c, some initially said that Apple wasn't targeting the mid-to-low-end market and didn't want to sacrifice profit margins. However, from the current price drops and order cuts, the iPhone 5c doesn't seem to significantly increase or maintain Apple's overall profit margin.

It no longer makes sense to debate whether the iPhone 5c was a success or a failure. If viewed as Apple's secret weapon to dominate the mid-to-low-end market and expand market share, the iPhone 5c disappointed everyone from the start. It had little effect on reducing costs or increasing profit margins, and the argument that it was merely a marketing ploy to boost iPhone 5s sales seems overly far-fetched.

Here, it’s important to note Tim Cook's statement:

"Currently, an important fact is that we now have the ability to make two phones instead of just one, which is a huge change."

Regarding this year's iPhone and iPad events by Apple, public opinion has been split into two distinct camps: one criticizing the former and the other praising the latter. One reason might be the difference between what we expected and what we got. We expected a "cheap" iPhone, but Apple gave us a shell swap game. We expected a Retina-screened new iPad mini, and Apple not only delivered but also included an A7 processor.

The iPhone 5c feels worse than last year's non-Retina iPad mini. While the smartphone market shows signs of saturation, it won't decline anytime soon. Meanwhile, the tablet market continues to grow. In theory, the iPhone 5c and iPhone 5s represent a dual-track strategy, but the iPhone 5c track is too weak and doesn't cause the same consumer dilemma as the iPad twins.

In reality, the biggest unsung hero of Apple this year is the A7 processor, shining brightly at both the iPhone and iPad events. Unfortunately, the iPhone 5c didn't get to enjoy it. Experts speculate that starting with the A7 processor, 64-bit processors will be the cornerstone of Apple's future. Clearly, the iPhone 5c didn’t participate in this evolution and may follow the same short-lived path as the iPhone 5, existing only for a season. Without features like fingerprint recognition and the A7 processor, will the iPhone 5c still please consumers a year later?

Most of the confusion around the iPhone 5c stems from Apple doing things differently this time. Releasing two phones at once, price drops, and cutting orders shortly after launch are all unprecedented. According to Tim Cook, Apple's dual-track strategy in the smartphone market will continue. Following Apple's rhythm, the next generation of iPhones will see bigger changes, and insider information points towards one direction: larger screens, possibly even up to 6 inches.

Since the iPhone 4, the pixel density of the iPhone hasn't changed at all. Even the new iPad mini released yesterday is catching up with the iPhone in terms of pixel density. From this perspective, the current size of the iPhone isn't suitable for a higher resolution screen. Compared to a "cheap" iPhone, the public's demand for a large-screen iPhone is clearly much higher.

The iPad mini went through many trials and tribulations to reach its current status, and perhaps the other branch of the mainline iPhone will follow a similar path. As for the iPhone 5c, it might just be Apple's first attempt at a dual-phone strategy for iPhones. Similar to this iPad event, the next one could be when Apple really unleashes its big move with iPhones. As Ben Thompson said, Apple is learning how to manage two phones effectively.

Here comes the crying voice of the iPhone 5c:

"I thought I was your tea, but I was just your straw."