Originally Posted by
abazigal Also, for the 5C, I don't see Apple saving that much. Material costs amount for only a very small part of the overall cost of an iphone. What Apple is likely doing, is trying to repackage their iphone5 so people think they are getting a brand new model, and not settling for a compromise like last year's model.
By repackaging the iPhone 5 into the iPhone 5c, Apple frees up more high-precision machinery that can be used for making the iPhone 5s. This way Apple will keep up with demand.
I think Apple really only wants people to buy the 5s. Still, if people ask for a cheaper iPhone, Apple will simply point to the 5c. If Apple faced overwhelming competition to a point where they were losing customers left and right, it could simply drop the price of the 5c to entice people into iOS. Of course, Apple will do everything in its power to avoid doing this because it's primary revenue comes from hardware. However, they do have options in case the market changes.