iPhone 5C, the C is for 'Cook'.

Indo-China Conundrum.

The obstacles that confronted Tim Cook and Co's China and India strategy were essentially two-fold; the first was the difficulty in creating a cheaper product without it being dismissed as old wine in a new bottle.

Even if such a product could be conceived and rolled out,it was essential that it is not a phone meant for the poor Asians; nothing would rankle the pride of the Chinese and Indian customer more. The eventual solution to this was to introduce the iPhone 5C,price it high,and segment the overall product line in a classic case of Apple skating to where the puck will be in perhaps two years.

With the introduction of the new iPhone 5C,the i-1 variant has now been refreshed with a new product that clearly segments the iPhone line-up. The iPhone 5C is not an older version of the latest iPhone,it is the first of a line of iPhones!
This move also has the advantage of ditching the iPhone 5,which,out of all the previous iterations,arguably had the smallest life cycle. 

Why was it essential that the 5C come with a high price tag and not be the budget phone that it was prophesied to be? The answer lies in the phone's target audience,which are essentially the late adopters in developed markets and the early adopters in emerging markets.

Grab the stragglers.

The 5C is remarkably suited to attracting these target audiences-it has a 'new' colourful look which will seduce the notso-technologically-savvi older and younger generations that make up the late smartphone adopters in Western countries.

It is at this point that Apple will make its price play,and when the company will finally pass on the manufacturing costs it has saved in the production of the plastic 5C,with the price shooting down to perhaps roughly $400.
This is indefinitely more effective than selling older models at cheaper prices. 

Investors have little ground to worry,and should rather rejoice in anticipation of the massive profits that Apple is set to reap,for the pricing of the 5C is a symbolic acceptance by Tim Cook to the economies of the company's supply chain.

The events of the last year combined with the groundwork that is presently being laid show that with Cook at the helm,Apple after Steve Jobs is just as strong. And in some ways,even stronger.