iPhone 5C launch fails to curb Android’s global market share

The iPhone 5C debuted at $550 off‑contract, a price that analysts say is too high to dent Android’s dominance in emerging markets, where cheaper phones have driven Android to nearly 80% of global shipments [1].

Pricing misstep and market dynamics

Apple’s decision to price the 5C at $550 off‑contract breaks with its historic strategy of offering a low‑cost, previous‑generation model at $99 on contract. The higher price places the 5C above the price ceiling that many consumers in emerging markets can afford, where off‑contract pricing is the norm. In those regions, Android manufacturers have historically captured market share by launching phones well below $550, a trend that has kept Android’s share rising year over year.

Implications for app ecosystems

The pricing gap is reflected in app‑store metrics. In July, Google Play surpassed Apple’s App Store in the number of available apps, reaching the 1 million‑app milestone, and matched Apple’s 50 billion‑download total [1]. Although Google Play’s revenue still trails Apple’s, analysts project Play Store revenue to overtake the App Store by 2016, based on Apple’s own report that its store generated 2.3 times the revenue of Google Play in the most recent quarter—a gap that was five‑fold in 2011 [1]. The continued growth of Android devices, bolstered by affordable models, suggests developers will keep favoring Google Play for distribution.

Competitive landscape

Apple’s “budget” iPhone arrives at a time when Android commands roughly 80% of global smartphone shipments, according to the latest IDC numbers [1]. The 5C’s plastic build and $550 price point do not materially shift that balance. Competitors such as Samsung have already released high‑profile, lower‑cost models that appeal to price‑sensitive buyers, reinforcing Android’s lead.

What to watch

• Next Apple hardware cycle – Whether Apple introduces a truly low‑cost iPhone in the next generation could alter the pricing dynamics.
• IDC quarterly shipments – Updates on Android’s share will indicate if the gap narrows as newer, cheaper Android devices enter the market.
• Google Play revenue reports – Quarterly revenue figures will reveal whether the 2016 revenue‑crossover forecast materializes.

Apple’s 5C illustrates the difficulty of competing on price alone in markets where Android’s ecosystem already benefits from a broad, low‑cost device portfolio. The key question remains: can Apple’s premium brand ever translate into a mass‑market offering without eroding its profit margins?