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Technology Stocks : Apple Inc.
AAPL 281.84-0.8%10:17 AM EST
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From: Kelly G.1/10/2013 2:31:53 PM
1 Recommendation  Read Replies (1) of 213173
 
“Despite the popularity of cheap smartphones, this will never be the future of Apple’s products. In fact, although Apple’s market share of smartphones is just about 20%, we own the 75% of the profit.”
Schiller says Apple will not do "cheap" smartphones. I thing this is more reflective of quality and not cost. They already have older phones being purchased and reduced cost. These are not "cheap" phones. Apple could just continue to do this. If they do come out with a less expensive phone, they certainly do not want to be associated with "cheap" android phone.

Some folks who buy cheap smartphones are customers that no one would want to have as you will never make money on them. Others who buy a cheap phone will eventually want to upgrade and will either buy a high end Android phone or an iPhone. The switcher numbers we see suggest that Apple comes out ahead here even as everyone lambastes them for conceding market share to Android.

The challenge would be a country like India. Not likely to do too well there with an expensive smartphone but would still like to have your foot in the door for the future.
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