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Apple Launched 8GB iPhone 5c to Boost Mid-Tier Sales in Markets Where LTE is Growing

Apple Launched 8GB iPhone 5c to Boost Mid-Tier Sales in Markets Where LTE is Growing

Today’s launch of the 8GB iPhone 5c in only a handful of countries, (the UK, France, Germany, Australia, and China), has some folks scratching their heads. Why introduce a lower storage capacity model in only a few countries?

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In a statement to Re/code, (via MacRumors), and Apple spokesperson revealed that it’s strategy is to offer a lower-cost LTE compatible handset in countries where those networks are experiencing rapid growth.

“The mid-tier iPhone segment is growing year-over-year and the 8GB model provides a more affordable option for markets where LTE is becoming more established,” an Apple representative told Re/code. The iPhone 5c, unlike the iPhone 4s, which is also still sold, supports LTE networks.

The report puts forth the theory that Apple won’t sell the 8GB iPhone 5c in the U.S. because of the still popular subsidized phone offers. Plenty of deals are available in the states which see a 16GB iPhone 5c going for $99 or less with a two-year contract.

The business model in the United States is changing, as carriers are offering interest-free payment plans, and charging for the device and service separately, so it will bear watching to see if a smaller-capacity version of the iPhone 5c, or a future mid-tier version of an iPhone, ever shows it’s face in the United States.

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