Apple introduced the iPhone 5c as an alternative to their more expensive products, but also as a more affordable alternative to the cheaper phones that other companies are producing. It was a gamble, although it seems to have paid off.
Tim Cook recently said that iPhone 5c users, 59% of them, are new to iPhones entirely. These would be the people who would choose an Android phone due to the cheaper price, but Apple has managed to snatch them up instead. This is due in part to the fact that Apple didn’t cut the corners that manufacturers typically do when it comes to producing cheaper phones. Rather than make a bare bones edition, they produced a high quality device that costs a fraction of their normal devices without making sacrifices.
Analysts didn’t believe this would be helpful, but Apple has once again proved them wrong. This is also what is helping them begin to take over the global market, a place that they have traditionally lagged despite being the leader in the United States. 55% of smartphone users in Japan now use the iPhone, with that number also growing in developing countries where the phones are now becoming more affordable.
It remains to be seen, but it is believed that this will also encourage users to upgrade to the new iPhone models that will be released later this year. Once they have joined the Apple family, they are less likely to go elsewhere for devices.
Source: Apple Balla