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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: GROUND ZERO™ who wrote (41878)12/14/2012 8:23:17 PM
From: Keith Feral  Read Replies (2) | Respond to of 223298
 
It might go down and recheck the $500 level. Apple is getting more consumer friendly with a $50 discount on iPhones during the Christmas season. That will make the iPhone one of the most affordable cell phones on the market right now. Plus, they just rolled out the iPhone in China today, with preorders 50% higher than last year. T Mobile is on the way next year with the iPhone, and China Mobile will eventually get their contract too.

I think it's great that Apple is finally promoting the iPhone at affordable prices for the holidays. $129 for an iPhone 5 is a great price point on any Smartphone with a 2 year contract. Now, it makes even more sense to upgrade and be able to afford the rip off costs of the accessories like cases and chargers where they make insane margins. Apple still generates more profits from accessories than most cell phone companies, so I'm not too worried about the lower price impacting margins.

Eventually, the iPhone 5 will be priced at $99 after their next phone is released anyways. I like the way they are accelerating price compression during the holidays to keep demand growing. Also, I think the price break might indicate a refresh for the iPhone 5 early next year. I think they need 2 styles of iPhones, one with the current screen size and one with a larger screen size.

The current form factor of the iPhone is too generic. 1 size and 2 colors to fit all - that doesn't leave much room for distinction except for the ugly cases that people have to enclose their iPhone. The Otter Box is a disgrace to the "elegant" design of the iPhone. But, if you drop it, it's going to cost $150 for a replacement which is a real headache.