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Technology Stocks : Apple Inc.
AAPL 259.06-0.5%Jan 8 3:59 PM EST

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To: Doren who wrote (148757)1/22/2013 3:23:32 PM
From: pyslent2 Recommendations  Read Replies (4) of 213181
 
Apple already sells a cheaper model, the legacy models

Apple probably sells the iPhone 4 for $400 (which gets subsidized to free with contract). That price is too high to compete with the $150 Android phones that are taking massive market share in emerging countries and markets without subsidy.

If Apple wants to move downmarket, the price has to come down. And to do so without canibalizing the high end iPhones is tricky. It seems to me that the 4 and 5 are not segmented enough for the 5 to survive at $150 price cut in the 4.
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