Tech —

The Cheap iPhone™ has been calling from inside the house all along

Analysis: Apple took lessons from other products, applied them to the iPhone 5C.

My favorite iPhone 5c + case color combo.
My favorite iPhone 5c + case color combo.

Rumors of the so-called "cheap" iPhone came to a head in the months leading up to Apple's September 10 media event in Cupertino—a rumor that ended up coming true on stage, at least on paper. As Phil Schiller unveiled the new, lower-cost iPhone 5C, he explained its specs: "The iPhone 5C comes with everything from the iPhone 5 and more."

That is to say that the iPhone 5C is essentially an iPhone 5—the phone Apple introduced in the fall of 2012—but in colors. It's also slightly lighter and thicker than the iPhone 5. The 5C will have the same four-inch 1136×640 display as the iPhone 5; it will have the same A6 processor as well. The 16GB and 32GB options will remain the same, it will still have 802.11n, it will still have the iPhone 5's 8MP camera, and so on.

In this case, the true new iPhone is the iPhone 5S, the 2013 version of the device that actually comes with a few upgraded features. Notably, it comes with a fingerprint scanner built into the Home button so as to bypass the need to type in a PIN or passcode. (I'm just gonna go ahead and pat myself on the back for calling that one in July of 2012.) The device also comes with an upgraded camera in the form of a five-element lens and bigger pixels, a "motion co-processor" that Apple plans to use to get in on the fitness gadget territory, and of course, the new 64-bit A7 processor. Did we mention that there's a version with a gold back?

Whether you think the new iPhone 5S is worth the upgrade price—and I've always argued that last year's buyers never think so, but the previous year's buyers always do—Apple seems to have made a move to bifurcate its iPhone line by rolling out the iPhone 5S and 5C at the same time. And it sure has, at least on paper. Never before has Apple introduced two "new" iPhones at the same time, so that is technically a first in this post-Steve Jobs world.

I put "new" in quotes because, let's be honest: the iPhone 5C is not a new device. The iPhone 5C is the iPhone 5, and Apple found a cheaper way to produce it.

And that's OK. Apple-watchers know that in (recent) years past, Apple has kept around last year's iPhone model as the cheaper, $99 (with contract) alternative to the real new iPhone. Last year when the iPhone 5 was first announced, the iPhone 4S (introduced in 2011) was kept on as the $99 version, with the iPhone 4 (introduced in 2010) as the ultra-cheap "free" version of the device. In 2011 when the iPhone 4S was introduced, the iPhone 4 was kept on as the $99 version.

That pricing structure is still in place today after Apple's press event. The iPhone 5S will soon be available starting at $199 with a two-year contract, with the iPhone 5C as the $99 (with contract) alternative. The 5C has taken the spot where the iPhone 5 would be if it still existed, and the 2011 iPhone 4S now takes the bargain basement spot.

Apple is also clearly learning from its success with colors in the iPod line by boldly coloring the iPhone 5C, along with new cases that let buyers experiment with different color combos. For Apple, the high-end has always carried a more neutral color palette, while the lower-end gets to play the part of the "fun" alternative. (Apple emphasized the device's fun-ness several times during the September 10 event, just as it has with other, lower-end products in the past). It's not cheap, it's fun!

The fact that the iPhone 5C is the iPhone 5 doesn't mean it's unworthy of discussion, though. Apple has identified a trend among certain parts of its user base—namely teenagers, elders, those new to the platform, and the like—who like Apple products but whose wallets prohibit them from diving in on the "pro" level. The iPhone 5C is a flashier way to snag those users by enticing them with something new-looking (no one wants to explicitly know they're using last year's model). The devices are most likely cheaper for Apple to produce as well. People were already buying the $99 iPhone in droves before, according to Apple's quarterly conference calls, and now they'll buy even more of them. Someone on Twitter also joked that the iPhone 5C would be the version you buy when you drop and crack your iPhone 5S—chuckles aside, the man's not entirely wrong.

In truth, Apple's decision to split its iPhone line isn't much of a bifurcation at all, and the long-rumored "cheap" iPhone turns out to be exactly what pundits have been saying for years. "Last year's" iPhone that gets reduced to $99 is the cheap iPhone. The call has been coming from inside the house this entire time, except we didn't know it, because there were no colors.

Channel Ars Technica