Apple for the day

Matt Vella has a Time article about the latest iPhone:

Apple is adding a lower-cost, lower-capacity 8GB iPhone 5C to its mobile lineup in Europe as a tacit admission that its strategy for the 5C— marketed as “for the colorful” in reference to its bright plastic case colors— hasn't worked well. In the UK, an unlocked version of the device costs £429, a difference of £40 from the 16GB model. The model is also available on the French Apple Store. As press time, it was not available on the US Apple Store.
Apple has been under intense pressure to lower the price of its entry-level iPhone in order to expand its market share, especially in developing markets such as China. Wall Street widely expected the ‘C’ in iPhone 5C to stand for ‘cheap’, but analysts were surprised at the phone’s price when it was released. Traders dinged Apple for the move by knocking forty billion dollars off the company’s market capitalization the day the 5C was unveiled. Apple CEO Tim Cook admitted in January of 2014that he had misjudged demand.
“The fact is, Apple doesn’t know what demand for the iPhone 5C will be in developing markets,” Piper Jaffray’s Gene Munster told Fortune the day the iPhone 5C was unveiled. Rather than give away more margin than necessary, he said, the company decided to start high and make adjustments later. Now, it looks like Apple is making those changes.

Rico says forty billion is a big inducement to change...