God help Apple if they're thinking about bringing out a Cheaper iPhone. One word, "WHY?!" Just how "Cheap" are they going to make the phone? There's already the iPhone 4 (Free with 2-year contract) and iPhone 4s ($99 freakin bucks)... how much cheaper can you get? These phones are just fine for the lower-end market.
Apple is making a big mistake here. They need to focus on innovating, not going backwards. They need to make new, jaw-dropping phones. I know that there will never be that Holy #$%$ moment with the first gen iphone but with them making cheaper phones, it's like they've given up.
They need to stick with high-end phones. This is ridiculous. Who here agrees?
AAPL is forced to play a catch up game to keep up with SAMSUNG, NOKIA, and GOOGLE by having to make cheaper plastic phones. This will compress margins big time. Big problem is that SAMSUNG, NOKIA, and GOOGLE already have the lower price point phones NOW and their phones are not only nice and cool, but have much more advanced technologies. Innovations and technologies are where AAPL falling behind competitions right now. AAPL trades down from 700 to 500 while SAMSUNG and GOOGLE have new highs.... AAPL is late again.....
The cheaper lighter iPhone would only be for China customers... The Chinese are poor and cant afford to pay the premium price of the iPhone we pay here in the states. This plan is brilliant because if Apple can succeed in putting an iPhone in every Chinese persons hands no matter the price it would add up to billions and take away from Samsung and others. These phones would run off China Mobile and the other China carriers. Think of it as the dollar stores or Walmart... They sell more quantity and lower prices which over the long run add up to the same or more in sales of retailers such as Target or Macys. Samsung has been doing it for years and all the so called experts think its working out for Samsung. I agree that Samsung is even selling phones simply because of the outrages price drops they offer customers. They are basically giving the phones away.
Sentiment: Strong Buy
Steve Jobs must be rolling over in his grave. Jobs once told the CEO of Nike that Nike made a lot of world class sporting goods but they also had their name on a lot of #$%$ and his advice to them was, "Just get rid of all the #$%$."
The Maps App flub was the first sign that without Jobs, Apple executives were willing to put short term profits ahead of quality. That move took 25% off the stock price. They deliberately chose to include an inferior component rather than insisting on "Best in Class" for the iPhone. When they go down market, they just start selling #$%$ phones.
I am certain that were Steve Jobs alive, he would tell those executives to use their time and talents to make the iPhone better, not cheaper. The guys in charge now seem to be going the wrong way.
I agree on the matter, that an iPlastic would hurt Apple most. The production cost of theier high-end phones is lower than those of theier competitors flagship products. The problem is that theier high-end phones are not high-end anymore, they are inferior and thus overpriced. Apple took a serious hit on software, the maps disaster has been fatal. Android passed Apple also on software and content.
I totally agree. They should let Samsung play that game and focus on what they do best and that's innovation. Otherwise I smell the next Sony. Greedy short sighted longs on this board cant see the forest for the trees.
If they can make 40% gross margin, then, it doesn't dilute the Company margin and they grow much faster given the majority of future growth will come from emerging markets. Also, other strategic advantages. First, China Mobil already losing market share to China Telecom and China Unicom at high-end. Apple very likely to force China Mobil to play on Apple's terms if the threat of losing share at the low end exists too. Second, they won't get far in China, India or many of the fast growing emerging markets without participating at low-end. Third, if they get people on Apple at low-end, they can move them up over time to the higher end and to iPad. The key is the 40% gross margin.
Sentiment: Strong Buy
Why produce cheaper iphones when there's always the previous gen that will sell for $99 with 2-year contract. I don't understand what apple is trying to do. They are going to waste their efforts trying to create a cheaper phone when their current line of iPhones are lacking.
Apple is already behind in technology with their phones compared to Samsung/Nokia. Their sole focus should be with quality phones. Apple has been playing catchup lately and if they go this route, they will be left behind making pre-paid phones.
Bleh this is just how i feel, just venting!
but apple is known for their elegant phones, nice style, and QUALITY........this will ruin them...they will then be just like every other cell phone company, and THAT will make them just like every other company who#$%$ the 500 billion market cap... just a memory