All Apple would need to do is take some of that unused reserve cash pile and expand the business into other areas such as mobile payments, cloud services or creating its own search engine and ad business. That way Apple could lower the price of some of its iPhones and still be able to boost revenue and offset some of those margin losses. Tim Cook needs to think outside of his little hardware only box. Android already owns the smartphone industry due to completely saturating the entire planet with Android devices. Apple has absolutely no room to grow iPhone sales and can never gain any market share against Android when every Android smartphone is half the price of an iPhone.
If Apple went into Google's spyware business, a reason for preferring iOs over android would be gone for many.
Also Apple would see reduced iPhone sales to the many android users who bought (or even were paid to take!) a cheap older model android phone and have then learned the iPhone is best for them.
If Apple wants to sell more than a few iPhones in most of the world's countries, they've have to come down on the price. Otherwise, there's simply no way such people can afford one.
The problem is how are the margin accounted for. From BOM cost Apple is making way more then 40%. Some of those belongs to R&D which will spread itself much more once you have a lower cost iPhone that makes up huge volume.
However Apple dont need the low cost iPhone to get its volume. Account by model Apple is making the world most popular phone. It sells far more 5s then any other Android Model. Including the so call popular Galaxy S4, which actually have 2 design variation and 2 hardware revision. But even if you combined those it is still no match for 5s volume. And this should be noted to those who kept saying Apple are holding up stocks, they aren't. ( P.S However they do hold up stocks for various other reasons. )
But one day there will be Phones that is good and fast enough at a much cheaper price, which is already happening in the next two years. Apple surely will have something to move down the ladder. ( Think iPod Touch )
All Apple would need to do is take some of that unused reserve cash pile and expand the business into other areas such as mobile payments, cloud services or creating its own search engine and ad business. That way Apple could lower the price of some of its iPhones and still be able to boost revenue and offset some of those margin losses. Tim Cook needs to think outside of his little hardware only box. Android already owns the smartphone industry due to completely saturating the entire planet with Android devices. Apple has absolutely no room to grow iPhone sales and can never gain any market share against Android when every Android smartphone is half the price of an iPhone.
Tim Cook is just killing shareholders because he doesn't want to part with his personal cash hoard. Doing nothing with that money is not going to help either Apple or shareholders. The share price will continue to be driven down towards zero if he doesn't take that money and create additional revenue streams. No company needs to save $100 billion for a rainy day. Apple is so incompetent to simply let Google dominate the search engine business and the smartphone industry and not do anything to fight back. Meanwhile Google's value soars and Apple's value plummets. Tim Cook clearly does not know how to do anything to stop Apple from sinking.
Quite simply, bullshit! You obviously don't know or understand this company.
I think the iPhone 5C will fill the niche of their low end model. In terms of technology it represents a very capable device in it's own right, yet one that will be easy to differentiate from higher end models (enclosure materials, touch ID and, eventually, display size).
It launched at a fairly high price (especially in non-US markets) but I believe it will pick up momentum as it cascades into lower and lower price points over time. The plastic enclosure will make it trivial to refresh the line-up with a new appearance when needed.
Moore's Law--or derivations of same--dictate that costs would come down over time and chip technology 'matures.' Why do people think a $90 BOM is unattainable? Look at how little you can pay for today's laptop! Why can't smart phones evolve along the same trend line?
Comments
All Apple would need to do is take some of that unused reserve cash pile and expand the business into other areas such as mobile payments, cloud services or creating its own search engine and ad business. That way Apple could lower the price of some of its iPhones and still be able to boost revenue and offset some of those margin losses. Tim Cook needs to think outside of his little hardware only box. Android already owns the smartphone industry due to completely saturating the entire planet with Android devices. Apple has absolutely no room to grow iPhone sales and can never gain any market share against Android when every Android smartphone is half the price of an iPhone.
If Apple went into Google's spyware business, a reason for preferring iOs over android would be gone for many.
Also Apple would see reduced iPhone sales to the many android users who bought (or even were paid to take!) a cheap older model android phone and have then learned the iPhone is best for them.
The problem is how are the margin accounted for. From BOM cost Apple is making way more then 40%. Some of those belongs to R&D which will spread itself much more once you have a lower cost iPhone that makes up huge volume.
However Apple dont need the low cost iPhone to get its volume. Account by model Apple is making the world most popular phone. It sells far more 5s then any other Android Model. Including the so call popular Galaxy S4, which actually have 2 design variation and 2 hardware revision. But even if you combined those it is still no match for 5s volume. And this should be noted to those who kept saying Apple are holding up stocks, they aren't. ( P.S However they do hold up stocks for various other reasons. )
But one day there will be Phones that is good and fast enough at a much cheaper price, which is already happening in the next two years. Apple surely will have something to move down the ladder. ( Think iPod Touch )
Quite simply, bullshit! You obviously don't know or understand this company.
It launched at a fairly high price (especially in non-US markets) but I believe it will pick up momentum as it cascades into lower and lower price points over time. The plastic enclosure will make it trivial to refresh the line-up with a new appearance when needed.