Apple introduces 8 GB iPhone 5c in five markets to help boost disappointing sales
Update: Apple has now added the 8 GB 5c to its European online stores. In the UK, the device is priced at £429 unlocked — a difference of £40 between it and the 16 GB model.
Context & Ripple Effects
Apple positioned the plastic-backed 5c as a $99 alternative in September 2013, but early signals included muted pre-order disclosure and a retailer’s short-lived price cut. In January, Tim Cook acknowledged that the model’s share was below Apple’s expectations, framing demand as different from the company’s forecast.
The 8 GB version turns storage capacity into a more explicit entry-price lever. It follows the reported plan for a lower-capacity 5c and gives Apple a narrower price step below the 16 GB model rather than changing the handset’s broader positioning.
First-order effects
- Apple adds a lower-priced iPhone 5c option in five markets; in the UK, the £40 gap makes 8 GB the new unlocked entry point beneath 16 GB.
- Buyers focused on upfront price gain an Apple-branded alternative, while accepting a materially lower storage tier.
Second-order effects
- The £40 ladder puts pressure on the 16 GB 5c’s sales mix: Apple must convert price-sensitive buyers without shifting too many purchases away from the higher-storage model.
- Retail channels that had already used discounts to move the 5c gain a clearer low-price configuration to merchandise, reducing the need to frame every purchase decision around a temporary markdown.
Third-order effects
- If Apple repeats the approach, storage tiers become a more central way to segment iPhone demand and defend headline pricing without redesigning the device.
- The 5c episode points to a handset market in which product-line fit matters alongside launch pricing: a lower entry point can address demand, but may also expose weaker appetite for the original configuration.
The trend: Smartphone makers are using configuration-based price ladders to reach more price-sensitive buyers while preserving higher-priced versions for customers who value added capacity.