Ben Thompson arguing that we’re getting a lower priced iPhone now because the internals of the iPhone 5 (which the iPhone 5C will reportedly use) are finally “good enough”:
In fact, the primary mistake Apple has made, if they made one, was in determining exactly where the “good enough” line is at. The iPhone 4S is arguably “good enough” and could have been the basis for a mid-range model last year. Apple thought otherwise though; I would imagine a not insignificant factor is that the iPhone 5 is the first iPhone with a fully Apple-designed SoC, the A6.
The big question mark for tomorrow remains what price this iPhone 5C will come in at? Thompson makes the case for $450 (unsubsidized) and $99 (subsidized) — with a $0 subsidized price point being possible as well (matching the current iPhone 4). That doesn’t seem cheap because it’s not. But it is still $200 cheaper than the current (unsubsidized) iPhone 5.
Remember also that the 32GB iPod touch currently costs $299 (unsubsidized, of course). If you think Apple is going to sell the iPhone 5C for a cheaper price than that, you’re crazy. It’s a higher-end machine. $350 may be possible (well, $349 in Apple parlance) if Apple really wanted to be aggressive. But I agree that $450 would be more likely. We’ll see tomorrow.