Without (re)opening a can of worms, or “bile”, I mentioned yesterday in iPhone 5S and iPhone 5C: what the **** did you expect? that the Apple naysayers with nothing better to do than criticise anything and everything Apple are this: pathetic.
Now it’s Wall Street’s turn to talk even more BS, and it seems they’re a wee bit embarrassed about incorrectly predicting a budget iPhone when in fact Apple did this much to suggest they were working on such a device: nothing.
Looking at StreetInsider, Goldman Sachs describes iPhone 5C pricing as a “key disappointment” while Deutsche Bank astutely observes that the ‘C’ in iPhone 5C doesn’t stand for ‘Cheap’.
More damningly, Fred Wilson of Union Square Ventures cries: “The reality of much of the world is that people don’t sign two year contracts like we do here in the U.S. They buy pre-paid sim cards and stick them into unsubsized phones.
“And on that basis, the 5c is a big disappointment. It will sell for $100 less than the 5S in the unsubsized market, which means $549 for 16gb and $649 for 32gb. The C in 5C does not mean ‘cheap’ as I had hoped. It means clueless, as in clueless about how the vast majority of new smartphone users are paying for their phones.”
Actually, it appears that poor Fred is "clueless" when it comes to spelling 'unsubsidised'. Oops.
I’m no financial expert, but why is no one criticising Lamborghini for failing to offer a wallet-friendly car? Why is no one criticising Apple for not producing a £200 notebook?
And without sounding like a dick, what’s the point in selling cheap phones to people who don’t have a lot of expendable income to blow on apps? From a business point of view, a cheaply-made iPhone with little mark-up doesn’t make much sense.
Hell, over in China, Huawei has reportedly decided to focus on high-end devices due to its “inability to compete with China-based low-price white-box vendors”, yet we're told that Apple should do the opposite. Why?
On a more positive note for Apple, Lazard Capital is impressed that the iPhone 5C boasts “juicy NAND margins”. The $100 mark-up on the 32GB model comes at a cost of just $20 to Apple. Hmm, it’s almost as if they know what they’re doing.