Is the iPhone worth 3 times its production cost?

This week in technology is all about the new iPhones, 5S and 5C. Apple had their biggest iPhone launch to date, selling over 9 million of their new models. Most people consider iPhone to be the superior mobile device, but how superior is it? And is its superiority worth charging 2 to 3 times the phones production worth?

The new apple iPhone 5S features a 64-bit apps processor and a fingerprint identification sensor. Apple has also made marked improvements to all iPhones with the new IOS 7. The 16 giga-byte iPhone 5S production costs are roughly $198 but its retail price is set at $649. The little brother to the 5S, the 5C, costs about $180 to produce and is sold at full retail price for $549. There is only an $18 dollar difference in the costs of production, but the 5S is selling for $100 more.

Apple made the decision to release two different phones to reach to two different consumers. The 5C, developed to target lower income per capita countries, comes in five different vibrant colors and is made of plastic. The new 5S, for the more elite Apple customers, looks similar to the iPhone 5 but is now sold in an attractive gold color.

With these new developments, apple has decided to stop the production of the iPhone 5 in effort to narrow their market.

So far, the idea of offering two different phones seems to be working for Apple. 

Written by : Tamara Carter, Dolphin Tech LLC.

References: http://www.nbcnews.com/technology/iphone-5s-cost-make-199-iphone-5c-173-8C11256386

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