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Apple's iPhone 5c Fails Where It Matters Most

By Andrew Tonner – Mar 24, 2014 at 7:30PM

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As more data comes to light, Apple's iPhone 5c looks worse and worse in key emerging markets like China

Combining tech giant Apple's (AAPL -0.91%) strong brand with a product that's affordable enough for emerging market consumers seems like a homerun business decision in the making, right?

At least, that appears to be the logic behind Apple's iPhone new-kid-on-the-block, the iPhone 5c.

However, investors are increasingly noticing that something clearly isn't resonating with the iPhone 5c in this market that it was practically designed for.  

Apple's emerging markets flop
According to a recent report from Chinese analytics firm Umeng, Apple's iPhone 5c today accounts for an alarmingly low number of the overall iPhone's operating in the Middle Kingdom.

How low you ask?

Source: Apple

According to its figures, the iPhone 5c represents an embarrassingly low 2% of the Chinese iPhone market place. Now given that the bulk of the market is still made up of older iPhones that could in theory still be upgraded in the months or years ahead. And to be fair, including the effects of handset subsidies on some carriers, Apple's iPhone 5c certainly looked like a device tailored made for this high growth part of the smartphone market. But in reality, Apple's low cost iPhone clearly hasn't struck the chord Apple had hoped as a recent ream of data now suggests.

In the video below, tech and telecom analyst Andrew Tonner looks at this news and what it could mean for Apple's iPhone 5c.


Andrew Tonner owns shares of Apple. The Motley Fool recommends, Apple, and Google. The Motley Fool owns shares of, Apple, and Google. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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