Stephen Lam/Reuters
The old iPhone 5C line
It will no longer sell the iPad 2 for $399. Instead, it will sell a fourth-generation iPad for $399. The fourth generation iPad has a retina display and faster chip, so this is a win for customers looking to save some money on an iPad.
Overseas, it's also changing up the iPhone line, ever so slightly.
In Apple's UK store it now lists an 8 GB iPhone 5C. Previously, the iPhone 4S was the only phone available in the 8 GB size.
The 8 GB iPhone 5C goes for £429 ($712), which is £40 ($66) less than the 16 GB iPhone 5C. An iPhone 4S sells for £349 ($579).
For what it's worth, 8 GB is not very much storage. iOS takes up 1.5 GB, so it's really just 6.5 GB which would mean you can't do too much.
We're not sure what's up with this move from Apple. It's not a huge price cut. It doesn't seem like it would be enough to push people to the 5C.
This seems to be an attempt to breathe life into a product that is currently lifeless. The iPhone 5C has been a dud, despite a heavy marketing push for the 5C.
On Apple's last earnings call, CEO Tim Cook hinted that something like this could happen.
I think last quarter we did a tremendous job, particularly given the mix was something very different than we thought. It was the first time we'd ever run that particular play before, and demand percentage turned out to be different than we thought. We obviously always look at our results, and conclude what to change moving forward. And if we decide it's in our best interest to make a change, then we'll make one. Obviously I'm not going to predict price changes on the earnings call.
That's a lot of jargon, but what he is saying is that demand for the iPhone 5C was weak. If Apple thinks it makes sense to change pricing it will.
And so it has.
The cheaper version of the 5C is not available in the U.S. store. Perhaps the 5C is doing better in the U.S. thanks to wireless contract subsidies so Apple doesn't feel compelled to offer this budget version of its budget phone here.