I think it's about corporate focus. Once you start down that path, you decide making cheaper everything is a place to be. Your sales people get that in them, your engineers decide things can be cheaper, not better. It's a corporate strategy and philosophy. It's not dissimilar to the automotive industry. As long as you are profitable Apple has a very viable POV. Let the other 30 companies fight tooth and nail for the last 30% of the market.
Well maybe now after Schiller's statement, the rumour mill concerning this subject will stop! A cheap, plastic 5" iPhone just doesn't make any sense for Apple the brand.
The rumor mill is just getting started. Notice how Phil carefully phrased his response ...
He did not say Apple will not make a less expensive iPhone, he just said they won't make a cheap one. He confirmed that's not how Apple does things.
But there will be a less-expensive iPhone mini. Guaranteed.
All of these clueless analysts and other people who presume to know what's best for Apple should just STFU. Apple decides what they're going to make next, not some clueless analysts and other asshats who often have ulterior motives.
It seems to me that Apple has always been about making kick ass devices and amazing software. I didn't know that Apple should be in the business of catering to every demographic and meeting every cheap price point in the entire world, including people who probably walk around barefoot all year, because they don't own a pair of shoes.
What's next, should Apple release a special welfare edition iPhone? After all, the number of people currently on welfare in the USA represents a huge market, millions and millions of customers! Think of all of the market share that Apple could add, because that's all that counts right? Never mind that Apple would be making no profit at all on their cheap phone, just think of the market share!
No, Apple should just keep doing what it's been doing for decades. That is to say, keep releasing kick ass products, and those people who want it and can afford it will buy it. Those who can't, well they won't. Go buy something else, and please don't come to any Apple forums and whine about the price, because your kind is unwanted. Apple isn't going to ship any cheap junk. That market is already crowded and well covered by other companies, so stop asking Apple to abandon all of it's core principles and make some cheap junk.
It wasn't that long ago that Apple was the new boy in the music player market. They started with the top end iPod, and soon followed this up with music players at a range of price points, and cleaned up in the music player market to the point that iPod became the generic term for the category. I don't remember people being so uptight about cannibalising sales or the slide into cheep, so why now ?
Am I the only Apple lover who is worried by this news? It wasn't that long ago that Apple had 50 percent of the smart phone market. What happens when Apple has 50 percent of the profits and 10 percent of the market and App developers go else where and no one is using iAds? Should we continue to be thrilled?
Hmmm.... AAPL was trading at ±$0 the whole day; after news of Schiller's comments, it's up $7+......
I think I'll take the market's analysis over yours.
Am I the only Apple lover who is worried by this news? It wasn't that long ago that Apple had 50 percent of the smart phone market. What happens when Apple has 50 percent of the profits and 10 percent of the market and App developers go else where and no one is using iAds? Should we continue to be thrilled?
iOS is more than the iPhone, it's iPhone, iPod touch, iPad and in the future MacBook and iMac. If you can develop for 800 million users no one complains about 10 percent.
It wasn't that long ago that Apple was the new boy in the music player market. They started with the top end iPod, and soon followed this up with music players at a range of price points, and cleaned up in the music player market to the point that iPod became the generic term for the category. I don't remember people being so uptight about cannibalising sales or the slide into cheep, so why now ?
There was no sacrifice of margins then.
Read the story about Munster's analysis carefully.
Am I the only Apple lover who is worried by this news? It wasn't that long ago that Apple had 50 percent of the smart phone market. What happens when Apple has 50 percent of the profits and 10 percent of the market and App developers go else where and no one is using iAds? Should we continue to be thrilled?
I agree, High-margin profit isn't everything. I've said this in several other threads this week.
You can make all the profit in the world, but with smaller adoption rates you loose regardless of how much money you've made.
That being said, it's been shown in many articles that iPhone users generate a majority of mobile use/web traffic. So Apple certainly hasn't got a lot to worry about...YET. But I am worried every time I see the market share dropping.
Here's a hint: call it a "simpler" iPhone NOT a CHEAPER one!
"Simpler" still has implied quality, "cheaper", doesn't.
Note both terms can cost the same and have the same margins.....
Like the mini, not a "lesser" iPad, just a DIFFERENT one. Can we say Shuffle, Nano, Air, Macbook etc.? Yes we can.
Could they screw it up? Sure. But then again they don't have to do they?
That seems to be the crux of the matter.
People hear/read "Cheaper" and equate that with build-quality.
Cheaper doesn't have to mean lesser quality.
Funny how words make such a difference.
I like to use "less expensive" or "lower priced" iPhone, but "simpler" is another good one. However, that implies that a "simpler" iPhone will have fewer features, which I don't think the cost savings would come from making the UI or OS simpler.
What leads you to believe they'd make less money, what leads you to believe they're going to lose marketshare, what leads you to believe developers would ever go anywhere else, and what leads you to believe that iAds makes them any meaningful money?
for the same reasons you think the opposite is true.
But they're only gaining money, marketshare and developers with their current strategy…
I wouldn't say they're "gaining" market share. Have you been reading the headlines this past week or two?
Addition: They may be selling more iPhones than last year, but the % they've gained is less that that of the Android market. And they gained a heck of a lot more than Apple.
New customers to Android, whereas Apple's are very likely just upgrades.
Android and Apple both have gained this year, but that's just because the market is nearing saturation, IMO.
Am I the only Apple lover who is worried by this news? It wasn't that long ago that Apple had 50 percent of the smart phone market. What happens when Apple has 50 percent of the profits and 10 percent of the market and App developers go else where and no one is using iAds? Should we continue to be thrilled?
Could you provide a link or something that shows that Apple EVER had 50 percent of the smartphone market. They do right now in the U.S. but worldwide they have never been anywhere near 50%.
There is a difference between "cheap" and "low cost." Cheap implies low quality. So, his statement is meaningless. Apple could very well come up with an iPad Mini like lower cost iPhone to address the prepaid and no contract markets.
Comments
I think it's about corporate focus. Once you start down that path, you decide making cheaper everything is a place to be. Your sales people get that in them, your engineers decide things can be cheaper, not better. It's a corporate strategy and philosophy. It's not dissimilar to the automotive industry. As long as you are profitable Apple has a very viable POV. Let the other 30 companies fight tooth and nail for the last 30% of the market.
Quote:
Originally Posted by AppleInsider
... Schiller's comments, made to the Shanghai Evening News, are of course not a guarantee that Apple will make a rumored low-cost iPhone. ...
typo.
He did not say Apple will not make a less expensive iPhone, he just said they won't make a cheap one. He confirmed that's not how Apple does things.
But there will be a less-expensive iPhone mini. Guaranteed.
Originally Posted by Mac_128
But there will be a less-expensive iPhone mini. Guaranteed.
0% guarantee.
If Apple actually made everything they said they weren't, they'd be bankrupt by now.
It's good that somebody has sense at least!
All of these clueless analysts and other people who presume to know what's best for Apple should just STFU. Apple decides what they're going to make next, not some clueless analysts and other asshats who often have ulterior motives.
It seems to me that Apple has always been about making kick ass devices and amazing software. I didn't know that Apple should be in the business of catering to every demographic and meeting every cheap price point in the entire world, including people who probably walk around barefoot all year, because they don't own a pair of shoes.
What's next, should Apple release a special welfare edition iPhone? After all, the number of people currently on welfare in the USA represents a huge market, millions and millions of customers! Think of all of the market share that Apple could add, because that's all that counts right? Never mind that Apple would be making no profit at all on their cheap phone, just think of the market share!
No, Apple should just keep doing what it's been doing for decades. That is to say, keep releasing kick ass products, and those people who want it and can afford it will buy it. Those who can't, well they won't. Go buy something else, and please don't come to any Apple forums and whine about the price, because your kind is unwanted. Apple isn't going to ship any cheap junk. That market is already crowded and well covered by other companies, so stop asking Apple to abandon all of it's core principles and make some cheap junk.
Quote:
Originally Posted by Slicksim
Am I the only Apple lover who is worried by this news? It wasn't that long ago that Apple had 50 percent of the smart phone market. What happens when Apple has 50 percent of the profits and 10 percent of the market and App developers go else where and no one is using iAds? Should we continue to be thrilled?
Hmmm.... AAPL was trading at ±$0 the whole day; after news of Schiller's comments, it's up $7+......
I think I'll take the market's analysis over yours.
iOS is more than the iPhone, it's iPhone, iPod touch, iPad and in the future MacBook and iMac. If you can develop for 800 million users no one complains about 10 percent.
J.
Quote:
Originally Posted by Slicksim
It wasn't that long ago that Apple was the new boy in the music player market. They started with the top end iPod, and soon followed this up with music players at a range of price points, and cleaned up in the music player market to the point that iPod became the generic term for the category. I don't remember people being so uptight about cannibalising sales or the slide into cheep, so why now ?
There was no sacrifice of margins then.
Read the story about Munster's analysis carefully.
Hence why, now.
"Simpler" still has implied quality, "cheaper", doesn't.
Note both terms can cost the same and have the same margins.....
Like the mini, not a "lesser" iPad, just a DIFFERENT one. Can we say Shuffle, Nano, Air, Macbook etc.? Yes we can.
Could they screw it up? Sure. But then again they don't have to do they?
Quote:
Originally Posted by Slicksim
Am I the only Apple lover who is worried by this news? It wasn't that long ago that Apple had 50 percent of the smart phone market. What happens when Apple has 50 percent of the profits and 10 percent of the market and App developers go else where and no one is using iAds? Should we continue to be thrilled?
I agree, High-margin profit isn't everything. I've said this in several other threads this week.
You can make all the profit in the world, but with smaller adoption rates you loose regardless of how much money you've made.
That being said, it's been shown in many articles that iPhone users generate a majority of mobile use/web traffic. So Apple certainly hasn't got a lot to worry about...YET. But I am worried every time I see the market share dropping.
Quote:
Originally Posted by jfc1138
Here's a hint: call it a "simpler" iPhone NOT a CHEAPER one!
"Simpler" still has implied quality, "cheaper", doesn't.
Note both terms can cost the same and have the same margins.....
Like the mini, not a "lesser" iPad, just a DIFFERENT one. Can we say Shuffle, Nano, Air, Macbook etc.? Yes we can.
Could they screw it up? Sure. But then again they don't have to do they?
That seems to be the crux of the matter.
People hear/read "Cheaper" and equate that with build-quality.
Cheaper doesn't have to mean lesser quality.
Funny how words make such a difference.
I like to use "less expensive" or "lower priced" iPhone, but "simpler" is another good one. However, that implies that a "simpler" iPhone will have fewer features, which I don't think the cost savings would come from making the UI or OS simpler.
Originally Posted by jfc1138
Here's a hint: call it a "simpler" iPhone NOT a CHEAPER one! "Simpler" still has implied quality, "cheaper", doesn't.
"Simpler" implies removal of key features. I don't like this trend of Apple releasing "new" devices that are just two year old hardware in a new case.
It wasn't that long ago that Apple had 50 percent of the smart phone market.
"This never happened."
Did I get that wrong? I thought I read that Apple had more than half of US smart phone sales?
Quote:
Originally Posted by Tallest Skil
This never happened.
What leads you to believe they'd make less money, what leads you to believe they're going to lose marketshare, what leads you to believe developers would ever go anywhere else, and what leads you to believe that iAds makes them any meaningful money?
for the same reasons you think the opposite is true.
Originally Posted by antkm1
for the same reasons you think the opposite is true.
But they're only gaining money, marketshare and developers with their current strategy…
Quote:
Originally Posted by Tallest Skil
But they're only gaining money, marketshare and developers with their current strategy…
I wouldn't say they're "gaining" market share. Have you been reading the headlines this past week or two?
Addition: They may be selling more iPhones than last year, but the % they've gained is less that that of the Android market. And they gained a heck of a lot more than Apple.
New customers to Android, whereas Apple's are very likely just upgrades.
Android and Apple both have gained this year, but that's just because the market is nearing saturation, IMO.
Quote:
Originally Posted by jfc1138
Here's a hint: call it a "simpler" iPhone NOT a CHEAPER one!
"Simpler" still has implied quality, "cheaper", doesn't.
Agreed.
Personally, I think Apple will enter the feature phone market.
Been writing my thoughts on it... http://www.obviouslogic.com:8080/opinions/iphone-nano.php
Quote:
Originally Posted by Slicksim
Am I the only Apple lover who is worried by this news? It wasn't that long ago that Apple had 50 percent of the smart phone market. What happens when Apple has 50 percent of the profits and 10 percent of the market and App developers go else where and no one is using iAds? Should we continue to be thrilled?
Could you provide a link or something that shows that Apple EVER had 50 percent of the smartphone market. They do right now in the U.S. but worldwide they have never been anywhere near 50%.
There is a difference between "cheap" and "low cost." Cheap implies low quality. So, his statement is meaningless. Apple could very well come up with an iPad Mini like lower cost iPhone to address the prepaid and no contract markets.