Why the iPhone is going into self-destruct mode

A while ago, Apple announced its newest installment in the iPhone series. Scratch that. Installments with an S. Yes. For the first time since the release of the iPhone, Apple is releasing two versions of the iPhone – 5S and 5C. While an annual addition to the company’s flagship product line is as sure as Winter, they broke the habit with the release of 2 new iPhones. This might be the most fatal of Apple’s mistakes in recent times.

The reason why Apple sells so many of their revolutionary mobile phones every year is because of the social status and the certain glow that comes with an iPhone. The handheld has seen countless worthy competitors, among them Samsung, HTC, and others. Yet, I believe one thing has kept it above the competition, and the thing Apple discarded this year with its announcement. The bottom line is: iPhone is a LUXURY product. To many, it feels overpriced. It certainly does feel so. Every year, Apple adds a few minor features and slaps a new name on their phone, dubbing these new features as innovation and such. Up the camera from 5 Megapixels to 8 Megapixels. Add flash capability to photo and video capture, when other phone companies have had them first installed in their phones generations ago. And recently, one of their “ground-breaking” new features is burst shooting mode. Basically, you shoot several pictures in quick succession. Again, several companies such as Samsung have had that feature implemented previously.

The reason why the iPhone’s “luxury product” status is backfiring on Apple this year is because they took a very risky decision: releasing a cheaper less-capable iPhone – the 5C. This colorful and plasticky new device will not exactly steal the spotlight from the prime 5S, but it will certainly devastate the iPhone’s image as a highly prestigious product. Allow me to give an example. Let’s take the German car company Porshe. The Porshe brand is universally equated with quality and prestige. All of their cars are highly priced yet this itself elevates it over its competitors in term of brand image and reputation. Owning a Porshe is mostly complemented with deep pockets and an air of superiority. Now, imagine if Porshe were to release cheaper versions of their cars to the public. Porshes would certainly be a more occurring sight on the road, and what was a high-profile brand is now as standard as a soap brand.

Releasing the 5C might provide a burst of revenue, yet it will severely hurt the company in the long run. A couple of months from its release date the iPhone will become an even more common sight, and opting for the higher-priced 5S won’t exactly provide you with the luxury of owning THE iPhone of the year, as there’s now two of the suckers on the market, and someone who’s paid relatively less than you can still claim the prestige of holding an iPhone in their hand.

Luxury and prestige when it comes to marketing are very tricky concepts. They can certainly help the product image and sales, something Apple has been benefiting from for years, yet one wrong decision and they backfire horrendously. Only time will tell how Apple’s fortune shall turn.

Oh… On a side note, I own an iPhone 4S. 

What do you think? Is this another effort by Apple to prolong its product life cycle, or is this a genuine upgrade on the iPhone 5? Let me know in the comments below.