iPhone 5S/C: Apple’s Weird Product Segmentation.

I haven’t been an iPhone user for many years now, my iPhone 3GS sitting disused in the drawer beside me ever since it was replaced, mostly because the alternatives presented by other companies have, in my opinion, outclassed them for a long time. This is not to say that I think everything else should replace their phone with a Xperia Z, that particular phone  is definitely not for everyone, as I realise that the iPhone fills a need for many people. Indeed it’s the phone I usually recommend to my less technically inclined friends and family members because I know that they have a support system tailored towards them (meaning they’ll bug me less). So whilst today’s announcement of the new models won’t have me opening up my wallet anytime soon it is something I feel I need to be aware of, if only for the small thrill I get for being critical of an Apple product.

So as many had speculated Apple announced 2 new iPhones today: the iPhone 5C which is essentially the entry level model and the iPhone 5S which is the top of the line one with all the latest and greatest features. The most interesting different between the two is the radical difference in design with the 5C looking more like a kids toy with its pastel style colours and the 5S looking distinctly more adult with it’s muted tones of silver, grey and gold. As expected the 5C is the cheaper of the two with the base model starting from AUD$739 and the 5S AUD$869 with the prices ramping up steadily depending on how much storage you want.

The 5C is interesting because everyone was expecting a budget iPhone to come out and Apple’s response is clearly not what most people had in mind. Sure it’s the cheapest model of the lot (bar the Phone 4S) but should you want to upgrade the storage you’re already paying the same amount as the entry level 5S. The difference in features as well are also pretty minimal with the exceptions being an A6 vs A7 processor, slightly bulkier dimensions, new fandangled fingerprint home button and a slightly better camera. Of course those slight differences are usually enough to push any potential iPhone buyer to the higher end model so the question then becomes: who is the 5C marketed towards?

It’s certainly not at the low end of the market, as most people were expecting, even though it looks the part with its all plastic finish (which we haven’t seen since I last used an iPhone). It might appeal to those who like those particular colours although realistically I can’t see that being much of a draw card considering you can buy any colour case for $10 these days. Indeed even when you factor in the typical on contract price for a new iPhone (~$200) the difference between an entry level 5C and 5S is so small that most would likely dole out the extra cash just to have the better version, especially considering how visually different they  are.

Another thing running against the 5C is that the 5S shares the same dimensions as the original iPhone 5 allowing you to use all your old cases and accessories with it. I know this won’t be a dealbreaker for many but it seems obvious that the 5S is aimed at people coming from the iPhone 5 whereas the 5C doesn’t appear to have any particular market in mind that necessitates its differences. If this was Apple’s attempt to try and claw back some of the market that Android has been happily dominating then I can help but feel it’s completely misguided. Then again I lost my desire for Apple products years ago so I might be missing out on what the appeal of a gimped, not-really-budget Apple handset might be.

The iPhone 5S does look like a decent phone sporting most of the features you’d expect from a current generation smart phone. NFC is still missing which, if I’m honest, isn’t as big of a deal as I used to make it out to be as I’ve now got a NFC phone and I can’t use it for jack so I don’t count it as downer anymore. As always though the price of a comparable Android handset to what you get from Apple is a big sore point with the top of the line model topping out at an incredible AUD$1129. I know Apple is a premium brand but when the price difference between the high and low end is $260 and the only difference is storage you really have to ask if its worth it, especially when comparable Android phones will have the same level of features and will be cheaper (my 16GB Xperia Z was $768 for reference).

I will be really interested to see how the 5C pans out as many are billing it as the “budget” iPhone that everyone was after when in truth it’s anything but that. The 5S is your typical product refresh cycle from Apple, bringing in a few new cool things but nothing particularly revolutionary. Of course you should consider everything I’ve said through the eyes of a long time Android user and lover as whilst I’ve owned an iPhone before it’s been so long between drinks that I can barely remember the experience anymore. Still I’m sure at least the 5S will do well in the marketplace as all the flagship Apple phones do.