Why the 5c? I Think I Know...


Some blogs are asking, “Why is Apple making the iPhone 5c? Who’s the target audience?”

Remember this headline from a year ago?

Foxconn Exec Says iPhone 5 Is the ‘Most Difficult Device’ It Ever Made

And remember this headline from the not-too-distant past?

iPhone sales up, but Apple profit margin falls

Still wondering why the 5c exists and the 5 has been canned? If so, I’ll connect the dots for you.

How many assembly workers did you see in the manufacturing video for the 5c? Hint: None. That’s because robots—which don’t require food, rest, or suicide prevention nets—are doing more of the 5c assembly process than was possible for the 5. They’re faster, they’re more precise, and they make the 5c much less expensive to manufacture than the 5.

The net result? Higher margins on what is, essentially, an identical product to the outgoing 5. The colorful cases and shells are just the excuse to make the new product.

So, let’s answer the first question: who is Apple targeting with the 5c?


[As of noon today, Apple stock is down 5% meaning that investors don’t feel all that targeted.]

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