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Does the iPhone 5c Cost Too Much?

Retailers would love the new iPhone 5c even more if it didn't cost $100. That's the message of a spate of recent price cuts on Apple's (NASDAQ: AAPL  ) handset, Fool contributor Tim Beyers says in the following video.

Best Buy was the latest to lower prices via a short-run promotion that gave buyers a $50 gift gift card to apply to the retail price of the 5c. The retailer offered a similar discount on certain Samsung handsets, including the Galaxy S4.

However, Apple's higher-end 5s has generally held its price -- $199 with a two-year contract -- while still selling briskly. The difference between the two handsets, Tim says, suggests that customers still see Apple as a premium brand that can (and should) demand a premium markup.

Do you believe Apple's iPhone 5c costs too much? Did you wait for a discount before buying, or did you stick with the 5s? Please watch the video below to get Tim's full take, and then leave a comment to let us know where you stand.

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Read/Post Comments (5) | Recommend This Article (0)

Comments from our Foolish Readers

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  • Report this Comment On October 09, 2013, at 8:34 PM, WineHouse wrote:

    In the past, when Apple only brought out one new phone, it immediately cut the "retail with contract" price to $100 (or $99). For example, when we switched to smartphones earlier this year, my husband bought the then-"latest" iPhone5 for $199 plus contract, while I bought the 4S for $99. IF Apple had stuck to the "usual" scenario, the 5s would have been $199 and the now-"old" 5 would have been $99. Instead, Apple revamped the 5 and wrapped it in bright shiny enameled polycarbonate and charged -- guess what? -- $99 for it. Note that Apple is no longer offering an out-of-the-box "old" 5. Compared to prior practice, this represents a bargain, since the 5c is in some respects more modern than the 5. SO -- why should Apple expect folks to pay LESS for a brand-new phone species (sort of) than they would be expected to pay for "the same-old but-now-older" model?

    It might seem obvious to Wall Street analysts, but it certainly does NOT seem obvious to me!

  • Report this Comment On October 10, 2013, at 12:40 AM, Oldfool103 wrote:

    They predicted a much lower cost phone which Apple wasn't making. If Apple had met those expectations, the analysts and reviewers would have complained about all of the missing features. As it is, they are taking out their own inability to predict on Apple. BFD. I'm good with the current pricing. If I was willing to buy a new smartphone on contract, I would be happy with the 5C--afterall, it is the 5 in new clothes--for $100 or the 4S for "free.". Both are good enough for my needs.

  • Report this Comment On October 10, 2013, at 7:37 AM, jdmeck wrote:

    Just because retailers a eplaying one-up-manship (and losing money) does not mean the price is too high. Apple does not need any of them. All they are doing is getting people to come in the door.

  • Report this Comment On October 13, 2013, at 1:14 PM, lolo123 wrote:

    i want one so bad!!!!!! so pretty

  • Report this Comment On October 13, 2013, at 1:15 PM, lolo123 wrote:

    that kinda sounded stupid

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