Apple iPhone 5c outsells Android rivals, Moto X loses ground

Apple’s iPhone 5c captured 69 percent of its buyers as first‑time iPhone users and 60 percent switched from Android, turning the mid‑tier model into a surprise winner over Google’s Moto X [4].

Market impact of the 5c

Tim Cook highlighted the 5c’s role in expanding Apple’s user base, noting that the device’s lower price did not erode margins but instead pulled a sizable portion of Android users into the iOS ecosystem [4]. The shift was most pronounced in high‑value markets: Apple reported a 55 % share of Japan’s smartphone market, a rare dominance for a premium brand in a region traditionally open to Android competition.

In emerging economies, Apple’s growth outpaced expectations. Luca Maestri cited “strong double‑digit” year‑over‑year sales increases in Greater China, Brazil, Indonesia, Poland, and Turkey, while sales in India and Vietnam more than doubled, suggesting the 5c’s price point resonated where cost sensitivity is high [4].

Moto X’s costly misstep

Google’s Moto X, despite aggressive price cuts from $550 to $399, failed to gain traction. The device reportedly cost Google over $700 million in losses during its first six months, a stark contrast to Apple’s profitable expansion with the 5c [4]. Wall Street Journal coverage framed the price reduction as an “assault on rivals’ high margins,” but the underlying financial hit underscored the difficulty of breaking into the mid‑tier segment without a compelling ecosystem advantage [4].

Comparative performance

What to watch

• Apple’s September 2013 release of the iPhone 5c in five bright colors, which will test whether the mid‑tier momentum sustains through the holiday season.
• Google’s next hardware announcements, particularly any pricing or design shifts aimed at recapturing Android‑to‑iOS switchers.
• Quarterly earnings reports from both companies, where Apple’s “new user” metrics and Google’s hardware unit profitability will be scrutinized.

The 5c’s success shows that a well‑priced, brand‑strong device can pull users from Android, while the Moto X episode highlights the high cost of misreading market appetite for mid‑tier hardware. The longer‑term question is whether Apple can replicate this conversion at scale without eroding its premium image.