IPhone News Byte: Why Apple's Budget IPhone is Risky Business

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IPhone News Byte: Why Apple's Budget IPhone is Risky Business

IPhone News Byte: Why Apple's Budget IPhone is Risky Business
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IPhone News Byte: Why Apple's Budget IPhone is Risky Business

Wochit 1:17 mins

Apple's plan to release a budget iPhone is clearly fraught with peril for the company: It needs to make sure that it gets an affordable device out to consumers in emerging markets without sacrificing too much of the profit margins that have made it one of the most profitable companies in world history. Barron's points us to a new research note from?UBS analyst Steve Milunovich, who outlines in detail why making a cheaper iPhone is really a risk for Apple's traditional business model. In particular,?Milunovich thinks that by going "down market," Apple will be well outside its comfort zone as a premium brand. Apple's iOS mobile operating system is winning even more ground in mobile advertising market share, according to mobile ad firm Velti. The firm saw Apple's share grow from 59 percent overall to 64 percent between May 2012 and May 2013, with the iPhone 5 grabbing a lot of those new impressions. The X1 is a combination digital converter and headphone amplifier, and the Audiophiliac thinks it will make your iPhone, iPad, or iPod sound better than ever!

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