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Technology Stocks : Apple Inc.
AAPL 255.53-1.0%Jan 16 9:30 AM EST
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To: Ryan Bartholomew who wrote (171914)7/21/2014 12:46:53 PM
From: pyslent  Read Replies (1) of 213182
 
If the bulk of consumers didn't blink at a tripling of post-subsidy price from $99 to $299, no phones would sell at the lower points, as margins could be vastly expanded by taking advantage of the inelasticity.


Ryan, What do you take away from the observation that the 5C undersells the 5S by such a huge margin yet is good enough by most standards? I take it a prima facie evidence that the bulk of the iPhkne's market is not price sensitive. This phenomenon is not exclusive to iPhone either-- among Android buyers, the top selling phones are also the most expensive.

There are obviously smartphone consumers that are price sensitive, but Apple has little penetration there, with good reason. Their cheapest phone costs $400.
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