It was explained to me that 5c is really just the five, but with less expensive materials and a fresh look aimed at those who would like that sort of thing. They've always sold three iphones: flagship 199 on contract, last years model 99 on contract, and the year before that free on contract. So they've got all price markets covered there save for the unlocked crowd (in other news NEXUS FIVE!)

So last year, they were selling $199iphone5, $99iphone4s, $0iphone4. They want to bump everything forward this year and drop the iphone4. Except a $99iphone5 is kind of awkwwwaaaard. I mean, for them it still carries really expensive materials but you're selling it for cheaper so profit margins take a hit. And the look of the phone with all those expensive materials is dilluting iphone5s look.

5c will probably start selling later, because the wait-in-line for a phone probably wants the 5s, but the buyer with a contract expiring might be more inclined to go for 5c. It's worth pointing out that an alternate universe un-c'd version of iphone5 would probably have sold less than 5c.

All this is interesting in that the major innovation here seems to be Apple as Primarily Fashion and then working behind the scenes to make that fashion as cheaply as possible. It's a good business strategy that only they can really execute here. For me, it's interesting but unexciting. I'm all about android's flexibility and it's integration into google's incredible service arm.