Apple Inc. (NASDAQ:AAPL) appears to be poised to launch a new, cheaper version of the iPhone 5C, this one with 8 gigabytes of memory rather than the current 16GB and 32GB. Less power would mean less expensive components within the smartphone’s colorful plastic shell, enabling Apple to cut prices as well. The current 16GB and 32GB variants would likely continue in production also, that is until all iPhone 5s are ousted by the introduction of the iPhone 6 sometime this summer or autumn.
Today’s revelation of Apple’s possible plans for a low end iPhone 5C came about as a result of leaks from an Apple partner, O2 Germany. The Teutonic firm accidentally released its promotional pages for the new model early, unveiling the new item in Apple’s lineup before the Cupertino, California enterprise was ready to do so on its own. The announcement begins, in German, “The new iPhone 5C with 8GB” (“Das neue iPhone 5C mit 8GB”), encapsulating the entire release in a single short sentence.
Some time later, further substantiation was offered by an anonymous reader who emailed a photograph of the 5C’s retail packaging to Engadget. Assuming that the image is genuine, as it certainly appears to be, this is confirmation that not only does Apple Inc. (AAPL) plan to produce the phone, but that it has already been manufactured and shipped through distribution channels.
The official release is likely only days away at most, and the photograph also refers to the 8GB 5C inside the package as “Blue,” confirming that the same bright assortment of colors is used for this device as for existing 5Cs with larger memory.
Retail sales of the iPhone 5C have been quite weak compared to the robust performance of the 5S. The 5C is meant to be a cheaper model, but its price is still too high for those who are on a limited budget, while those with more funds prefer the 5S for its stronger performance, greater range of features, and, probably, better aesthetics. An 8GB iPhone 5C could potentially capture profits from the low end of the smartphone market, but its price would need to be significantly below that of the 16GB to make a difference in sales.
Rumor has it that prices would be slashed by approximately $80 to $85 relative to current 5C prices. Regardless of the precise figures, however, the new version of the iPhone 5C shows that Apple Inc. (AAPL) remains determined to penetrate the cheap smartphone market, even though its current strengths lie elsewhere. Only time will tell if a “bargain” version of the iPhone 6 is also in the works.
