When the iPhone 5c was announced, it was believed that Apple was making a desperate attempt to make up for the high cost of their devices. Analysts believed sales would be slow, and it may have appeared that way for a time, but now we know that they are proving to be very popular products that have taken up some of the market share that Android products previously held.
During the most recent conference call by Tim Cook, he stated that 69% of the people who are buying 5c models are new to the iPhone entirely. This means they would be consumers of Android models in some cases, although they have now made the choice to come into the Apple family of products.
This is part of why Apple has finally started playing a larger role in the global market. Apple iPhones are now 55% of the market in Japan, with growing numbers in the developing world thanks to this more affordable model. This could also be a selling point in the future, when customers might be tempted to upgrade to the new iPhone 6 that will likely see a release later on in 2014.
This marks another success for Apple in trying something new. Where many companies cut back features and cut corners in order to produce cheaper phones, Apple made an equally high quality device that costs a fraction of their normal product, but makes no sacrifices at all.