Do Apple longs want to see the introduction of cheap iPhone?
In the short term Apple would sell a large number of units. In the longer view some sales of more expensive iPhones will be cannabalized by cheaper model. In a longer term a cheap phone can cause the brand no longer perceived as the highest quality.
So it appears could be good for short term and ad for long. What say you ?
I'm not just Apple long but, Apple LoooooooooooooNG. AND I am not sure. It could bring in future High end users. I think as long as it is perceived as a "beginner" Apple , it won't hurt the brand's overall perception. The good thing is the "sticky" operating systems ( hard to leave plus i tunes sales, etc) and loyalty numbers. (sort of like your first car was a chevy vega when you were 19, and by the time you are 30 you are buying corvettes)
On the other hand I don't see how it couldn't hurt margins. If you are Looooooong it really doesn't matter what all the analysts say, but if you are a short term investor ... who knows what could happen if they (like the present swoon) are all upset with decreasing margins. So as the EDs would say, "I feel strongly both ways .................. I'll give you my answer in a year"