How Do You Like Them Apples?

So the dust has settled since Apple's iPhone launch event. Two new phones, all as leaked, no smartwatch and no new Apple TV.

The only surprise, apparently, had been the pricing of Apple's new phones - where was the cheap phone we've been promised by industry know-it-alls?

Of course if you've been reading here for any length of time you'll have known what was coming all along. And I'm surprised how many people just haven't understood Apple or the market.

The key to the iPhone 5c is not that it is any cheaper for you to buy, it's all about being cheaper for Apple to make.

As we've seen over the last twelve months the iPhone's average selling price is dropping. With it's old policy of dropping the price of the current and last generation phones to make a 'range' Apple has hurt it's margins.

The 5c will be the biggest selling iPhone to date and as a result needs to be the most profitable too.

I have no doubts that this is the case.

There will probably never be a cheap iPhone to compete with Android or Nokia. For Apple and potential buyers the 5c is cheap enough.


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