I think that's what many here don't realize as well. Since the iOS Platform is locked into only running on Apple devices, and their overall market share is declining (even though it is actually been increasing in total adoption, just not as much comparatively to Android) The only way to gain more adoption of the "platform" is to have a more diversified portfolio of products in all price ranges.
I think at this point in the Smartphone market, there will be little NEW adoption from other devices. People that have smartphones are probably already married to that platform, and those who don't own smartphones are probably not going to adopt or upgrade simply because they have no use for it. We're not there yet but it's closing in on the crest. and since Android is an "open" platform, they have a much easier chance to gain traction than Apple. So the only thing Apple can do at this point (since even smartphone tech is pretty much at the tipping point too) is to release a model in the only remaining segment left in the smartphone market....the low end.
Why not? Pre-retina screen, A5X, about 5", no LTE shouldn't be expensive. On the other hand I wouldn't expect Nexus's $350 price tag on greed.inc branded product, but 450 is possible. Maybe it also will run on T-Mobile. Inexpensive phone on expensive network doesn't make sense, but T-Mobile with their value plans just fine.
Here we go let's compare, iPhone 5S-------------------iPhone mini A7 (dual or quad)-------(A4/A5) (single or dual) 4 inch retina-----------------3-3.5 inch regular 8 or more megapixel -----3-5 megapixel cam. 1.2 megapixel front--------VGA-------------------- Longer battery life---------as low as half--------- [B]-------------------price/memory---------------[/B] ------------------------------8 GB------------------------ Not offered------------------at least 100 contract ---------------------------------100 - free contracted ---------------------------------^if offered^------------- ------------------------------16 GB---------------------- Maybe 200 or not offered-^^^^^look up^^^^^^ Above 500 if offered-------200-free contracted ----------------------------32 GB----------------------- 200-300-----------------------at least 200---------- 600+---------------------------300-free contracted- ----------------------------64 gb------------------------- Get the picture yet, if not post.
I predict the new product will be the iPhone Shuffle. No screen, randomly chooses which number to call.
There: I have as much information to impart as the “analysts”.
Actually there is a case for Apple to make radically cheaper products. They must be close to maxing out the number of credit cards they have on record, at half a billion, of people willing to buy a premium product. Think about it: to sell 100-million of any one product, they only need for it to appeal to 20% of their customer base, with near-zero marginal costs. Building the number of credit cards further would be a huge plus. If each customer only generates $2 per year of profit, that's $1-billion from the existing base. With that sort of numbers, growing the base has to be a win.
Comments
Quote:
Originally Posted by asdasd
Advantages of cheaper iPhones
1) It probably won't reduce over all profit as volume will compensate for margins.
2) It increases the market share of what is in fact a platform - iOS.
3) Multiple product upgrades a year allows Apple to compete with new Android models more rapidly.
4) It reduces the impact of bad quarters - those two quarters prior to the Big Launch of a new iPhone.
5) It reduces the risk of a bad, or mediocre, upgrade to the high end phone causing a collapse in revenue. ( think manufacturing snafus etc.)
6) It increases the number of people with 2 or more devices - which makes them much stickier see Seeking Alpha here. ( http://seekingalpha.com/article/1099961-apple-margin-pricing-and-product-strategy) [1]
7) It locks people into the system early and gets them for life ( at the cost of reduced margins now) - increasing Apples monetization of apps, videos and music over time, which is a growing component of Apple's business model ( see here: http://seekingalpha.com/article/1102111-app-monetization-drives-revenue-growth-for-apple).[2]
These are all great thoughts.
I think that's what many here don't realize as well. Since the iOS Platform is locked into only running on Apple devices, and their overall market share is declining (even though it is actually been increasing in total adoption, just not as much comparatively to Android) The only way to gain more adoption of the "platform" is to have a more diversified portfolio of products in all price ranges.
I think at this point in the Smartphone market, there will be little NEW adoption from other devices. People that have smartphones are probably already married to that platform, and those who don't own smartphones are probably not going to adopt or upgrade simply because they have no use for it. We're not there yet but it's closing in on the crest. and since Android is an "open" platform, they have a much easier chance to gain traction than Apple. So the only thing Apple can do at this point (since even smartphone tech is pretty much at the tipping point too) is to release a model in the only remaining segment left in the smartphone market....the low end.
Quote:
Originally Posted by raymondinperth
What Apple needs to do now is make a larger display for iPhone and increase the price .
Not a cheap iPhone . iPhone is earning 2x more than shamesung . Why apple needs to dominate ? Apple is the king nobody comes close !!
They already have: it's called the LTE iPad mini 64 GB.
AND with no unused but expensive voice contract going to a cellphone service provider the total operating costs will still be less overall.
iPhone 5S-------------------iPhone mini
A7 (dual or quad)-------(A4/A5) (single or dual)
4 inch retina-----------------3-3.5 inch regular
8 or more megapixel -----3-5 megapixel cam.
1.2 megapixel front--------VGA--------------------
Longer battery life---------as low as half---------
[B]-------------------price/memory---------------[/B]
------------------------------8 GB------------------------
Not offered------------------at least 100 contract
---------------------------------100 - free contracted
---------------------------------^if offered^-------------
------------------------------16 GB----------------------
Maybe 200 or not offered-^^^^^look up^^^^^^
Above 500 if offered-------200-free contracted
----------------------------32 GB-----------------------
200-300-----------------------at least 200----------
600+---------------------------300-free contracted-
----------------------------64 gb-------------------------
Get the picture yet, if not post.
I predict the new product will be the iPhone Shuffle. No screen, randomly chooses which number to call.
There: I have as much information to impart as the “analysts”.
Actually there is a case for Apple to make radically cheaper products. They must be close to maxing out the number of credit cards they have on record, at half a billion, of people willing to buy a premium product. Think about it: to sell 100-million of any one product, they only need for it to appeal to 20% of their customer base, with near-zero marginal costs. Building the number of credit cards further would be a huge plus. If each customer only generates $2 per year of profit, that's $1-billion from the existing base. With that sort of numbers, growing the base has to be a win.