iPhone 5C Will Cost $99 For 16GB, $199 For 32GB On 2-Year Contract

Today at Apple’s iPhone event, Apple unveiled a cheaper iPhone: the iPhone 5C. While the device in itself is not really a surprise after countless of leaks, the price of the iPhone 5C was still an outstanding question. The 16GB iPhone 5C will be released for $99 with a two-year contract. A 32GB model will cost $199. No word on unsubsidized prices yet.

The iPhone 5C will greatly help Apple in many markets. While most phones come with a 2-year contract in the U.S., it’s not the case in the rest of the world. A new cheaper iPhone was highly anticipated as it could become a best-selling device in Europe and Asia. In these countries, customers can opt for cheaper plans but have to purchase unsubsidized phones. While it’s a great deal over two years, the high price of the high-end iPhones sometimes scares people off and make them buy Android phones.

Older models was one solution, but Apple wants its users to feel that they are buying new phones, not old, heavier models. Moreover, the iPhone 4 and the iPhones 4S use aluminium and glass and are more expensive to make than you would expect.