By Brian X. Chen
The New York Times
September 10, 2013
That is why Apple is releasing two new iPhones this month instead of just one, including a cheaper model aimed at less wealthy countries where new Apple phones have been desired but are out of reach because of their price.
The lower-cost model, the iPhone 5C (the C for color) comes in a plastic case and has the same features as the now-discontinued iPhone 5. The fancier model, the iPhone 5S, comes in aluminum and includes a faster processor and a fingerprint sensor for security, among other features. The iPhone 5S costs $200 with a contract, and the iPhone 5C costs $100 with a contract.
But at full price without a contract, which is how many overseas carriers allow people to pay for phones, the iPhone 5C costs $550 — only $100 less than the iPhone 5S. That is far higher than the range of $300 to $400 that many analysts believed could help Apple against lower-cost competition.
Click the link to read the entire article which includes a quote from Milton Pedraza, CEO of Luxury Institute: http://www.nytimes.com/2013/09/11/technology/apple-shows-off-2-new-iphones-one-a-lower-cost-model.html