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Vikot's river of random thoughts

No more plastic iPhone 5, a missed opportunity.

Viktor Marohnic


There is a rumor that iPhone 6 will come in two sizes, one with bigger screen, but more importantly the rumor says that Apple will discontinue plastic iPhone 5C. C stays for clueless says Fred Wilson. Honestly for me iPhone 5c was one of the biggest disappointments of 2013. I was hoping that Apple will go more aggressively after Android market, but with only $100 cheaper iPhone that still costs $549 which cannot really be considered affordable phone for the mass audience.

I sort of understand that Apple wants keep iPhone's position as expensive but highly desirable product, yet not sure how they plan to keep advantage over competition that is getting really close in terms of quality and features. As in is a typical innovators dilemma problem, you can keep adding features, coming up with better glass and metals, but for how long?  At some point no one will need all that stuff some future iPhone will have and most of the Android phones will be more than a good enough for most of the people. Ask yourself, would you buy an iPhone 10 that looks like this one on the picture and pay $200-300 more than for a perfectly good Android phone that does the job just as well?

Even though I'm still a huge Apple fan and I give them all the credits for inventing a smartphone that was actually something we wanted and enjoy using everyday, number of innovations from perfectly done touch screen to simple and intuitive interface, in this case I believe think they are making a big mistake not to offer much cheaper phone.

Android is currently holding 80% of the global smartphone market and with time they are getting a much serious threat to Apple. The fact is that with cheap iPhone Apple could easily take a huge piece of market overnight. They could even afford to loose money on iPhone and go after iTunes revenue from app sales, in app purchases, subscriptions etc, like Amazon does with Kindle. Amazon obviously came to a conclusion that for them is much more profitable to acquire a user at any cost and make money in a long term from books sales, than to make money on a Kindle device sale.

To conclude, we are only six years into the smartphone market and there is no sign of growth slowing down. I believe that the one who will own bigger consumer base will win at the end. And right now, despites the fact that Apple still have superior product, Android has a better chance to win the race in the end. What do you think?