There were ongoing rumors that Apple is going to launch a cheaper iPhone that has a plastic casing, dubbed as iPhone 5C, on Sept. 10. The upcoming four-inch iPhone is purportedly replacing the iPhone 4 and 4S in the product array. But why does a company known for its luxurious smartphones suddenly offering a low-cost version of its flagship model? TechCrunch suggests that the iPad maker wants to go global.
Surely, Apple will gain market share in the lower-end field of the smartphone market in the U.S., but it’s just a side effect. The fresh model is the ideal iPhone worldwide. In a number of countries, carriers are switching to SIM-only plans and the iPhone is way too costly for regular earners.
Not the same in the U.S. with or without your own phone, At&T, Sprint, and Verizon won’t deduct it from your bill. Carriers in Canada used to do the same but it’s slowly shifting. In Europe, you have options. You can either choose a subsidized plan over a less pricey SIM-only plan or vice-versa.
The change in the European market took place years ago. Carriers like Free opted to entice consumers away from posh plans as a replacement for plans offering cheap phones, and it worked. The new plans were not just slightly less costly, they were way cheaper. There’s no going back. SIM-only plans will get increasingly popular each year.
If you will try to compute it, SIM-only plans are much cheaper that subsidized plans. Furthermore, who would want to see expensive dues on their bank reports? The sole way now to save money is to get the unsubsidized SIM-only plans.
A great number of consumers are only after internet-enabled phone and those people are hard to tempt if they won’t really use it like businessmen do.
If they are only up to checking emails, Facebook, Twitter and Instagram which they can also do with a less expensive smartphone, why are they going to spend much on a posh unit? That would be a superb challenge to technology companies who do not offer low-cost smartphones but Apple seemed to have realized it and decided that offering a cheaper iPhone 5C would be the best strategy.
