Apple's "New" iPhone 5c Illusion

While most of the tech press seems to have been awed by Apple’s colorful "new" iPhone 5c, I’m not biting. It's definitely not cheap, it's made of plastic, and it's hardly new. But of course, this was all obfuscated by Apple’s usual dog and pony show.
I trust that most of you have already caught a ton of the news, previews, early reviews, and analysis concerning the new iPhones. So I’ll spare you the ad nauseam re-hash of the facts, and cut straight to the chase: this is an editorial opinion piece about Apple's “new” iPhone 5c.

It Sure Ain’t Cheap

While I’m not one to readily buy into rumors or the predictions of "analysts", the fact that Apple’s new base model iPhone 5c is about $50 more than even some of the highest estimates floated during the pre-launch hysteria, is pretty surprising. Then again, Apple never promised an entry-level iPhone, so we can't blame the company for that letdown. Instead, the speculators got it wrong again. What did we really expect? After all, Apple doesn't compete in the entry-level of...well, anything.

Regardless of what the forecasters led us to believe, the iPhone 5c is, nevertheless, one of the most lackluster reveals in Apple's history. To see just how absurd this “new” product truly is, you need recall last year's iPhone 5, and have a little background on Apple’s previous iPhone launches.

Past iPhone Lineups

Before last Tuesday, Apple only introduced one new model per year. When a fresh iPhone came out, the previous year's version dropped in price to become a mid-range offering. Meanwhile, the iPhone from two years ago fell another $100 to become the low-end model.

You can’t entirely fault Apple for this strategy because, at least from a capitalization standpoint, it's actually pretty brilliant. The company gets to concentrate on just one new smartphone each year. Early adopters pay a premium for the latest technology while it’s still new. By the time the next one comes out, the company has maximized its margins, paying for a lot of that R&D and manufacturing, and can continue utilizing its production line.

Incidentally, this is also why Apple products hold their value for so long. The previous two models aren’t technically old phones; they’re the current, lower-end models. Well, that’s the way it worked previous to last Tuesday, anyhow.

The New Order Of Things

Unfortunately for those who wanted to pick up last year’s iPhone 5 at a $100 discount this holiday season, Apple has altered the deal. This year, the company broke from tradition by introducing two “new” phones.