Apple's iPhone 5c Gets a New Lease on Life

As we head further into 2014, much of the focus of Apple (NASDAQ: AAPL  ) investors is increasingly shifting to Apple's already widely anticipated iPhone 6.

While Apple's coming iPhone upgrade could perhaps recharge Apple's growth rate more than most investors realize, Apple also recently pulled another lever to hopefully support what's quickly becoming the weak link in its iPhone empire without causing much of stir.

Apple's lower, low-cost iPhone
Apple doesn't do cheap well. That's why so many questions swirled around its new low-cost iPhone 5c when it was first released last September.

Source: Apple

And, as many people thought may be the case, the iPhone 5c has subsequently turned into a flop, selling far fewer units than most had hoped for. Even more surprising, Apple's iPhone 5c has proven a major disappointment in emerging markets, where Apple likely hoped the device would perform the best.

However, in hopes of addressing this nagging issue, Apple recently released a smaller 8 GB version of its iPhone 5c in select markets that once again reduces the price consumers will have to pay for Apple's entry-level iPhone. So will this work? And what will the financial implications be for Apple's key profit driver?

In the video below, tech and telecom analyst Andrew Tonner discusses Apple's recent move and the implications it could have on the company and the broader iPhone 5c lineup this year.

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  • Report this Comment On March 22, 2014, at 3:39 AM, TonyMorgan7 wrote:

    Don’t know why iphone 5C is not successfully running in the market as I purchased it last year in December and I never find anything wrong in this set. I have light green color Smartphone and it looks attractive along with many features. For it, I even purchased a <a href =" charger</a> along with other nice colorful case. I am satisfied with it and looking forward for iphone 6 which is rumor to be launched around September.

  • Report this Comment On March 22, 2014, at 8:15 AM, twolf2919 wrote:

    This whole notion of the iPhone 5c being a "flop" is a fiction made up by tech bloggers and financial analysts with an agenda. By most estimates, 12 million iPhone 5c sold in the Christmas quarter. That is more than Samsungs's best selling phone ever: the Galaxy S4 (which sold around 8-9m). That is more than all Windows phones put together. More than all Blackberries sold that quarter.

    What a flop, indeed!

    Similarly, Mr. Tonner parrots the meme that the 5c failed to conquer the emerging markets. Yet, there isn't a shred of evidence that this was Apple's plan! Analysts and bloggers just kept shouting about how Apple was losing market share and that it must come out with a lower cost set to regain share in the emerging markets. Never mind that Apple has publicly stated that market share is not their priority. But the analysts and bloggers weren't listening. When the 5c came out, they thought that this was the low-cost device Apple had to bring out in their minds - and to their dismay, it wasn't as cheap as they thought it needed to be. A failure. Again, never mind that Apple may never have intended to come out with a low-cost device to increase market share!

  • Report this Comment On March 22, 2014, at 4:24 PM, fauxscot wrote:

    Again, since you decided to delete my prior comment accurately describing your categorization of the 5C as a 'flop', here's someone else who will be more diplomatic, but no less accurate:

  • Report this Comment On March 23, 2014, at 7:12 PM, fauxscot wrote:

    Last year, Samsung spent $14,000,000 on marketing.

    More than the GDP of Iceland.

    It took that much to catch up to the failure of the 5C and 5S, I guess.

  • Report this Comment On March 23, 2014, at 7:13 PM, fauxscot wrote:

    Whoops... I left out some zeros... 14,000,000,000.

  • Report this Comment On March 24, 2014, at 9:00 AM, fauxscot wrote:

    One more nail in the 'fail' line of reasoning:

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Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

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