Tech giant Apple has been trying to figure out a way to enter developing markets for quite some time, and hoped to finally do so with the iPhone 5c. Although the phone is selling at a fine pace in the U.S., it has failed to break through in those coveted locations.
However, the company is not discouraged by the iPhone's struggles in developing markets, and is moving forward with its plan to make both of the new phones available in 51 countries by the end of November. As early as next week, the iPhone 5s and iPhone 5c will reach dozens of markets.
Expanding Its Reach
Since the first iPhone was released, the device has only come in at a premium price, making it popular in North America and Europe, but its price -- and Apple's release strategy -- has prevented the phones from making headway in developing nations.
Even if price was not a factor, Apple has simply been unwilling to focus on selling the iPhone in China and India, that is, until now. When Apple announced the iPhone 5s and 5c, it stated that both phones would reach 100 countries by the end of 2013, which is many more than previous generations have ever reached.
The new phones are designed with global reach in mind, since Apple made sure that both the 5s and 5c could support wireless signals not normally seen in the West. Between additional support for carriers in developing nations and faster release schedules, Apple is targeting overseas markets just as much as the U.S. market.
Apple will launch the iPhone 5s and 5c in 35 locations on October 25, with an additional 16 countries coming on November 1. Following their September launch, the phones have only made it to Western countries, with the exception of Australia, Singapore, Hong Kong, and Japan.
Low, But Not Low Enough
Providing a cheaper alternative to the regular high-end iPhone seems to be the only way for Apple to really take over developing markets. Unfortunately, Apple did not release the iPhone 5c at anywhere near a low enough price.
In China -- where Apple has the best chance of making a major impact on the market -- the iPhone 5c launched at $733 (for the 16GB model). Analysts have stated that until the iPhone 5c drops to a magic price point in the low $600s, it will not become a significantly more common device in developing markets, no matter how many markets Apple decides to enter.
Along with the unveiling of its new iPads on October 22, Apple is rumored to be including an announcement regarding how successful the iPhone 5s and 5c have been up to this point. Analysts seem to think that Apple will be able to sell as many as 34.5 million iPhones this quarter. In comparison, the iPhone 5 only saw 26.9 million sales in its launch quarter, back in 2012.