[molecule]

> Take a look at apple.com today and note which new iPhone appears first the 5C, not the 5S. Which phone did they show a commercial for? The 5C.

Which one will have a higher profit margin for Apple? The 5C.

[twiceaday]

Which one are they not taking pre-orders on? The 5S.

[clarky07]

perhaps. everyone assumed coming in to today that the "cheaper" version would hurt margins. Granted it was priced above expectations, I'm not sure it will have significantly higher margins.

[bryanlarsen]

I think it will have higher relative margins than the 5S but lower absolute margins than the 5S. But that's just a guess.

But what is relatively assured is that it will have substantially higher margins than the equivalent in their old strategy, a price reduced 5.

So it's quite likely that the introduction of the 5C will increase Apple's overall margins rather than decreasing it, as everybody expected.

[threeseed]

The 5C is not about a higher profit margin for Apple. It's about maintaining their current profit margin whilst offering carriers a bigger incentive to bundle and sell and their phones.