Slate's Farhad Manjoo looks at the new iPhone5C, Apple's latest phone "for price-conscious consumers." It turns out that there's nothing really economical about the device. When you consider the internals, the iPhone5C is in fact more expensive than its predecessor.
Then there's the iPhone 5C -- the long-rumored cheap iPhone that isn't. It's made of plastic instead of the aluminum found on the bigger iPhone. It comes in five colors: green, blue, yellow, pink, and white. Other than that, it's got the same internals as the iPhone 5: same camera, same processor, same capabilities. And same price. Indeed, the 5C is so similar to the 5 that Apple is discontinuing that model. The 5C will sell for $550, or $99 with a contract. This isn't a cheap phone. And if the 5C is cheaper for Apple to produce than the 5 would have been -- which seems plausible given its plastic body -- it might even be a way for Apple to boost its profit margins rather than scale them back.
This is a bold move. In the tech business, it's rare -- and perhaps even unprecedented -- for a product to keep its prices steady year after year after year. By holding the line against lower-priced phones, Apple will be able to keep its profit margins high -- and at Apple, profits are sacrosanct, considered more important than sales and market share. But refusing to give an inch on prices is also extremely risky.
|The Rapidly-Growing Student-Led Divestment Movement|
|Study: People With Short Names Earn More|
|"Oil supply capacity is growing worldwide at such an unprecedented level that it might outpace consumption."|
|Mt.Gox's Demise Could Potentially Threaten Bitcoin's Future|
|Stats Prove That Middle Class in America Is Radically Shrinking|
|“For the first time in the world, AI will run in an election.”|
|“Never let a good crisis go to waste.”|
|Japanese Robot Serves Ice Cream From Inside a Vending Machine|
|“Wouldn't it be nice if you were rewarded for all of the little good things you do.”|
|CaptchaTweet: Write Tweets in Captcha Form|
|The (Very Scary) People of Public Transit|
|Amateur-Built Electric Car Going After Record Set by Tesla|
|How to Avoid Jury Duty|
|When the Wrong Hastag Can Get You Killed by an Assassination Drone|
|“Instead of consuming fossil fuels, it would then feed surplus electricity into the grid.”|