During this afternoon’s earning call, Tim Cook was asked about the iPhone 5c and whether the company is disappointed with sales after customers were expecting Apple’s plastic iPhone to be significantly cheaper than its $99 price tag on-contract.
Before diving into iPhone 5c expectations, Cook clarified that even though customers may have expected the iPhone 5c to be Apple’s entry level phone, the company has never considered it to be its cheapest model. That honor goes to Apple’s other cheap phone – the iPhone 4s.
Tim stated that the iPhone 4s is priced as a entry-level offering to giving customers full-access to iOS at a cheap price, while the iPhone 5c is being sold as a mid-tier offer with the 5s of course at the top. Cook elaborated the the iPhone 5c was a good way for Apple to enter the mid-tier market and expand sales in the category. With a record number of iPhones being sold last quarter Tim says he’s pretty pleased with the results so far.
