Apple's iPad mini seen as 'winning template' for launching low-cost iPhone

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Comments

  • Reply 21 of 30
    tallest skiltallest skil Posts: 43,399member


    Originally Posted by hentaiboy View Post

    Have you consider the manufacturing cost of the 4S? The margins would be too small.


     


    Yep. And as neither of us actually knows them, you can't say that. That's why I added the extra $50.

  • Reply 22 of 30
    andysolandysol Posts: 2,506member
    asdasd wrote: »
    Oh FFS those are American contract prices. In the rest of the world there is no such thing as X price on contact because there are different prices for different contracts.

    Oh FFS- is he supposed to list pricing for 193-250 countries just to appease everyone? It's an American site, the majority of users are American, Apple is American, the largest selling country for Apple is the USA, and he's American. You can do your own math for your own country.

    Disclaimer: this doesn't mean I don't like posts from people from other countries. In fact, I really enjoy listening about other countries and how Apple does and is perceived over there. What I don't do is bitch if they bring it up.
  • Reply 23 of 30
    numoonumoo Posts: 11member


    Well the iPhone 4 model could be just repackaged in plastic and lower res screen and less memory and slower processor.......oh yeah... they could just bring back the original iPhone and 3g and sell it for less.

  • Reply 24 of 30
    numoonumoo Posts: 11member


    Market share does not come for free.


     


    iAds will need to make it up, plus royalties on apps sold to the customers of the cheaper iPhone model

  • Reply 25 of 30
    asdasdasdasd Posts: 5,317member
    andysol wrote: »
    Oh FFS- is he supposed to list pricing for 193-250 countries just to appease everyone? It's an American site, the majority of users are American, Apple is American, the largest selling country for Apple is the USA, and he's American. You can do your own math for your own country.

    Disclaimer: this doesn't mean I don't like posts from people from other countries. In fact, I really enjoy listening about other countries and how Apple does and is perceived over there. What I don't do is bitch if they bring it up.

    The posters here may not be in the majority American. Apples sales are mostly not American. So no - he doesn't have to list all the world prices but the iPhone 4S is not $0 no more than the iPhone 5 is €0 which is true in some countries on some contracts. Since apples future growth depends on these markets posters need to understand why Apple's American strategy is not universal or the posts are ridiculous.

    The other reason is this : Apples success in the US is probably subsidy driven. The iPhone 4 costs carriers full price, $400 or so. And the contract for that phone is is the same as a $250 Android phone. If the subsidies were even the iPhone 4 would cost about $200 on contract and I don't think it would sell at all. That's the situation in the rest of the world.

    Apples US success proves that demand for cheap iPhones is elastic. Apple can win market share with low cost phones. To understand why the iPhone 4 is not low cost you then have to understand the world outside America ( rather than opine "how can you get lower than $0) - and I would argue that y'all Americans need to do more of that anyway.
  • Reply 26 of 30
    peterdeeppeterdeep Posts: 7member

    Quote:

    Originally Posted by macxpress View Post


     


    Which is why I think the whole cheap iPhone thing is stupid in the first place. 



     


    There's a big world out there outside of the US, and in "emerging" markets (I live in Latin America) Apple products are very expensive, and more so when the average income is figured in. Where I live, the 4S starts at $740 USD, and the 5 at $870. I remember when I bought my iPhone 4 (granted, the biggest model in terms of memory) it was $1200 USD. A MacBook Air is cheaper than that. Wages here are much lower than the US and it's difficult for many people to buy iPhones legitimately (which is why they're the hottest items on the black market). If Apple wants to sell more iPhones, there are markets out there in the world Apple is missing. This is one of them, and Latin America is huge, and it's going from Blackberry to $300 Android phones. IF Apple wants a piece of this pie, then they're going to have to make some adjustments.


  • Reply 27 of 30
    piandopiando Posts: 4member

    Quote:

    Originally Posted by OllieWallieWhiskers View Post




    it's not. a cheap iPhone would sweep the prepaid market. Growth in China & India would explode. However, in the US it won't do so well and analysts will cry failure. but to be honest, other than wall street, who cares what analysts think?



    I'm sorry but since when has Apple created cheaper, lower quality products just to gain market share? I just don't see the point. 

  • Reply 28 of 30
    analogjackanalogjack Posts: 1,071member
    ... "However, after the launch of Pad mini, this segment has become one of the largest parts of the market, even convincing many suers to upgrade from cheaper tablets to the iPad mini."

    I presume a 'suer' is a new word meaning (appropriately enough) 'Samsung user'. Interestingly 'suer' is also a homophone of 'sewer'
  • Reply 29 of 30
    groovydgroovyd Posts: 2member
    Clever analysis here except putting the price in the middle of the curve would cannibalize away from the top of the curve equally to introducing a new market to the bottom. For this I would expect the price to fall at the curves lower quarter position at 300-350 not the middle. Putting it in the middle is a little too close to their current market which may decide to then downgrade. Really the goal would not be to shift their current market lower but force the sub 350 market to upgrade.

    The bigger question is what is wrong in them just continuing to discount older models to these lower markets? Why introduce a new low end phone when there are plenty of older generation phones being upgraded out of every time a new high end phone comes out. Recondition them and sell them again sub 200 in the lower market. This way they are not risking their image nor their margins.
  • Reply 30 of 30
    gatorguygatorguy Posts: 21,094member


    MacRumors noted another round of iPad/iPad Mini refurb reductions from Apple in the past week. To be clear they've not blamed it on anything in particular. Perhaps there's just a few too many right now and the price will go up soon.


    http://www.macrumors.com/2013/05/24/apple-slashes-prices-on-refurbished-ipad-mini-and-ipad-4-models/


     


    9to5 posted one of the best deals they saw, a 16GB Wi-Fi Mini refurbed for just $249 at WalMart. Free in-store pick-up or $5 shipping.

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