Why Is Apple’s iPhone 5C So Expensive?

BY FARHAN - SEPTEMBER, 14TH 2013

The release of the iPhone 5C has shocked many people – not the smartphone itself, but the way Apple has priced it. Many people around the world who were waiting to buy aniPhone 5C were left in a bit of shock when Apple announced the price. A factory unlocked 16GB (base model) iPhone 5C starts from $549, which as you can imagine is quite expensive. So why has Apple priced the iPhone 5C a bit too expensive? Let's look at some of the reasons.

Expensive iPhone 5C

 

10 September 2013, the day people around the world got to see two new iPhones being released at the same time – next-gen iPhone 5S, and iPhone 5C. iPhone 5C is the device which was expected to be "cheap". Rumors of this device started since the beginning of this year; "cheap iPhone to be launched", "Apple's cheap iPhone ready" – these were some of the headlines you were used to seeing. But as soon as the price of the iPhone 5C was mentioned – all hell broke loose.

People took their frustration on social media sites such as Facebook and Twitter. There were many angry Tweets and Facebook statuses, which were all aimed at Apple for being too greedy. Many of you might agree with this but there is a much deeper reason on why the iPhone 5C has been priced so high.

 

After all $549 for a rumored budget iPhone is way too expensive!

It Was Only A Rumor

Do you know why you are complaining that iPhone 5C is really expensive? You might not know, but it was the thought in your head, that Apple was going to release a cheaper version of the iPhone which made you think that iPhone 5C is expensive.

If all the rumors regarding a "budget iPhone" were the opposite, i.e "Apple releasing an even more expensive iPhone", you would have been pretty happy with the price of the current iPhone 5C.

After all it was only a rumor. And, like with all rumors you shouldn't take them all seriously – only a fraction of some of the rumors turn out to be true.

 

Check out the complete review of the iPhone 5C!

iPhone 5C Is Better Than iPhone 5

Another misconception many people have in their mind is that the iPhone 5C is worse than iPhone 5. In fact it is the opposite; iPhone 5C, in terms of specifications and overall performance is better than iPhone 5!

You are actually paying less for a slightly upgraded version of the iPhone 5 – which isn't really bad after all.

iPhone 5C which is available in multi-colours has made an impression on you that it is supposed to be cheap. The polycarbonate body of the iPhone 5C gives the impression of "cheap" but when you hold it in your hands, it does feel sturdy and quite good.

When you hold iPhone 5C and Samsung Galaxy S 4 in your hand then you might be able to judge better if the iPhone 5C is "cheap".

Apple Is A Brand

 

Most of you are forgetting that Apple is a brand. And, brands are expensive. Have you ever seen Lamborghini release a cheap car? You can't even imagine that in a million years.

 

The same goes for Apple. It was kind of very stupid of us to even think that Apple would release a cheaper iPhone – it is a brand, and brands charge premium for their products.

 

iPhone 5C is expensive, no doubt about that, but Apple was no-way going to release a cheaper iPhone with the same features (or a bit improvised) of that of an iPhone 5.

Well, do you think iPhone 5C is worth the money?

 

http://maypalo.com/2013/09/14/why-is-apples-iphone-5c-so-expensive/

 

Microsoft Buys Nokia

Why Microsoft Buying Nokia Is A Win-Win Situation For Everyone

By now most of you have probably heard that Microsoft has bought Nokia for a cool $7.2 billion. This news has shocked many people around the world, as nobody really expected Microsoft to completely take over the Finnish company. Once a mighty company which was the sole champion in the phone market has now come to an end. But is it really bad news for Nokia or Microsoft? Well, actually it is a win-win situation for both the companies and the final consumer – that is you! Check out the reasons why Microsoft buying Nokia is a win-win situation for everyone.

Why Did Microsoft Buy Nokia?

If we are to understand why it is a win-win situation, we first have to answer; why didMicrosoft buy Nokia? After all Microsoft was already working with other smartphone vendors such as Samsung and HTC. So why buy Nokia?

The answer is kind of obvious; competition!

Microsoft is facing an ever-increasing competition from tech companies such as Google, Apple, Samsung and others. The one thing common all of these tech companies have, is that, they manufacture hardware themselves. And, having their own hardware is extremely important. That’s why Google bought Motorola – it needed a hardware company.

That’s the reason why CEO Steve Ballmer was pushing for Microsoft to buy a hardware company. And, as it turns out Nokia was the help line.

 

Why Did Nokia Sell To Microsoft?

The next question we should be asking is “why did Nokia sell itself to Microsoft?”. It’s a valid question, considering Nokia sells millions of phones around the world and is a multi-billion dollar company.

But if you are to look at the recent numbers regarding Nokia smartphones sold around the world, then you would know that Nokia is in trouble. Nokia’s last quarter sale were down 24 percent compared to previous year. The feature phones market, where Nokia has a stronghold also saw a deep decline as Nokia sold 39 percent less phones. This shouldn’t come as surprising considering many people are now opting for smartphones – where Apple and Samsung (Android) are dominating the market.

Nokia needed an exit strategy – and, Microsoft was there to provide it.

What Do They Each Benefit?

Each company has to keep their shareholders happy, either by selling itself or buying another company.

Nokia had a bleak future as the Lumia series did not perform as well as expected. Although it did sell literally millions of smartphones around the world, but the shiny new Metro tiles were a bit too different from the icons we have been used to. So Nokia didn’t want to go bankrupt after some years, it need to sell itself to keep its shareholders happy.

Nokia’s shareholders get the entire chunk of the $7.2 billion – which is a lot.

So what does Microsoft benefit? As mentioned above Microsoft now gets to choose what kind of hardware the next Lumia will have.

What else does Microsoft get for paying $7.2 billion? Check out this list.

§  Nokia’s entire smartphone department.

§  Nokia’s design team.

§  Hundreds of patents (these days it seems these are very important).

§  HERE mapping technology.

 

How Will This Deal Benefit The Consumer?

This is the thing you will be most interested in. How is this Nokia-Microsoft deal going to benefit you, the final consumer? In the short-term it won’t, but in the long-term it will.

So how exactly is this win-win situation for everyone? Microsoft’s acquisition of Nokia will mean that Microsoft will now have a greater control on the smartphones being produced by Nokia.

Considering Microsoft is a tech titan, up-coming Lumia smartphones will have better features overall (if Microsoft decides so). Microsoft also currently has $68 billion in cash which it can use to completely revamp the Lumia series or introduce a new range of smartphones or other tech.

Well, what are your thoughts on the entire Microsoft-Nokia deal?

http://maypalo.com/2013/09/04/why-microsoft-buying-nokia-is-a-win-win-situation-for-everyone/