Tuesday, April 16, 2013

Apple Likely to sell 75 million 'very very cheap' iPhones next year

Which Apple: Expensive or Very Very Cheap?

Apple has always been the expensive fruit - that is why an apple a day keeps the doctor away.

Likewise, Apple smartphone too is also very expensive as the manufacturer claims it be far better than other smartphones - and like eating apples, keeping an Apple in your hand is a status symbol.

But now with the availability of a number of competitive and cheaper phones in the market, which has already started to hurt Apple share of the smartphone market, Piper Jaffray analyst Gene Munster has been quoted as saying that Apple may launch some 75 million low priced iPhones in 2014.

In an investors note released today, Munster said he expects Apple to sell a $300 non-subsidized iPhone starting in September. Such a device is likely to trigger a 30 percent cannibalization rate, which means that for every three low-cost iPhones sold, one full-price iPhone is cannibalized.

As such, Apple's share of the high-end smartphone market may dip to 37 percent next year from 43 percent last year. But its share of the low-end (under $400) market will rise to 11 percent in 2014 from nothing in 2012.

Now coming back to apple - the fruit. An expensive apple does cost more while an apple not very tasty and sweet costs less. Likewise, this low cost iPhone by Apple will certainly be features deficient and would hurt the buyers rather than pleasing them. Naturally Apple cannot afford to give you every sweetness of its $399 iPhones.

What do you think?

Read more about it at: C|net
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