27 Sep 2013

Why are Australian telcos struggling to sell the iPhone 5C?

Since the launch of the iPhone 5S and 5C last week, Australian telcos are reporting that while the new iPhone 5S is selling as well as expected, the iPhone 5C is lagging steadily behind. Reports have shown that the ratio of sales between the 5S and the 5C is 11:1 here in Australia, which is a very big difference to US sales, which are tracking at 3:1. But why is the 5C not popular with Australian consumers? Many are suggesting that it’s a lack of innovation; the novelty of upgrading your iPhone is mainly due to a new feature or technology to play with, and the iPhone 5C perhaps does not deliver this. The price point between the two phones could also be playing a role. On Telstra’s smallest monthly plan, the iPhone 5C costs $71 per month, where as the iPhone 5S is only $7 more at $78. Maybe the material used to build the 5C is also a factor in the lackluster sales. This version of the iPhone has gone somewhat backward in the choice to use a plastic cover- and this may have swayed consumers choice, making it the less ‘luxurious’ version. Finally, the choice of colours, while a small detail in the scheme of things, may be putting some buyers off. The range comes in a decidedly pastel palette which would not be to everyone’s taste, compared with the fairly crowd pleasing grey, silver and gold options of the 5S.