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Technology Stocks : Apple Inc.
AAPL 261.05+0.3%Jan 13 3:59 PM EST

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To: pyslent who wrote (148761)1/23/2013 3:07:28 PM
From: Doren  Read Replies (1) of 213182
 
> 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.

I don't see the economics working.

If apple were to say save a little on materials and make an iPhone 4 cheapo then sell it for $250, I wouldn't buy it and I'm cheap. It will obsolete too fast.

Much better to buy as new of a model as I can afford and a prepaid plan.

> It is the rest of the world, and particularly the developing world, that is the issue.

I'm not really sure Apple wants the low end market even in developing countries. Buying a $700 iPhone is not like buying a 70,000 BMW. Almost anyone in the lower middle class can do it. It probably replaces a computer for many people. Apple can't keep up with phones now. (Lots of untapped markets left, like Indonesia.)

In addition an iPhone in a developing country is probably far more of a status symbol than it is in the US. So even if a person buys an android in a developing country they still want an iPhone and many will cross over when they can afford to cross over.
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