They offer three phones:
- This year’s, with the latest technology.
- Last years’s, starting $100 lower.
- The two-year-old model, with meager storage, free on contract, $200 lower unsubsidized.
It’s just that instead of putting the year-old iPhone 5 in slot #2, they’ve created the 5C to debut in that slot.It makes sense.
"The Lexus to the 5C’s Toyota; the Banana Republic to the 5C’s Gap. (The 4S is Old Navy.)"
There is a more detailed "strategy" analysis.