Is Apple's iPhone 5C The First iPhone For Kids? (AAPL)
Apple (NASDAQ: AAPL) has received a lot of attention for developing the iPhone 5C, the company's first "new" iPhone that will retail for less than $600.
Designed as a replacement for last year's iPhone 5, the iPhone 5C replaces the familiar metallic body with a variety of plastic cases.
Hoping to reach a new market, Apple introduced four new colors to the iPhone family: blue, green, pink and yellow. A white model will also be available.
Despite the ongoing hoopla (and the unexpected pre-release price cuts), Apple has yet to announce iPhone 5C pre-order numbers. This has made some critics wonder if the device will underperform at retail.
Something To Worry About?
Last fall, Apple did not immediately announce that it had set a new record for iPad Mini pre-orders. But when the global sales of both the iPad Mini and iPad 4 were calculated, Apple announced that it had sold three million tablets in one weekend.
The Cupertino, California-based tech giant could post similar results for the iPhone 5C -- with the help of its youngest customers.
Trip Chowdhry, the Managing Director of Equity Research at Global Equities Research, told Benzinga that he has interviewed parents who are planning to buy the iPhone 5C for their kids.
"They said that whenever they get home, the kids take their iPhones," said Chowdhry. "Some put it in their mouths, some start playing with it -- it's very difficult to pull it out of their hands. But they're also worried; the current form factor of the iPhone 5 and iPhone 4S is not very safe for the children. Plastic is ideal for them."
Not Necessarily Apple's Market
Chowdhry clarified that this is what he heard from the parents he interviewed. This may not be Apple's ideal market for the iPhone 5C.
Even if it's not, the company is actively (and perhaps delicately) targeting kids with its effort to infiltrate schools. The company also added age-based categories for apps in iOS 7.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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