Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Doren who wrote (148144)	1/13/2013 5:25:42 PM
From: Road Walker	3 Recommendations Read Replies (3) \| Respond to of 213176

"We forecast that by 2016, 31% of the global overall handset market will be low-end smartphone," Ian Fogg, principal analyst at IHS, told the BBC. A lot of debate on the thread has been should Apple offer a "cheap" iPhone. I think the question should be, should Apple offer a premium product at a lower price point. And I think the answer is probably yes, as that's where the major world wide growth will probably land. The low hanging fruit is gone from the high end smartphone market and will continue to decelerate. Win or lose share, we won't see >30% secular growth again. Nokia's line up, thanks to Zak (as much as I hate to say that). Covering all bases. Should Apple move toward this? Maybe part way... an iPhone Nano? nokia.com

To: Doren who wrote (148144)	1/15/2013 4:33:33 AM
From: JP Sullivan	3 Recommendations Read Replies (2) \| Respond to of 213176

There have also been rumours that Apple may offer a lower-priced iPhone model. IMHO, Apple coming out with a lower-cost iPhone is a near certainty. Generally speaking, by now (five years after the iPhone's debut) those who can afford the deluxe version and want one would have already gotten theirs. From them, the best Apple can expect is an upgrade every other year or so when their contracts expire; even those who bought without a contract may not feel compelled to upgrade if there is no substantive change in physical appearance in future models -- you'd be hard pressed to tell the difference between a 4, 4s and 5 at a glance. If this is the only market segment Apple cares about, it is unlikely to increase iPhone revenues by much in the future. I doubt if this segment will grow more than 10% annually. Unfortunately, that is not a number that is going to impress investors. An obvious place for Apple to keep growing its smartphone revenue at the rate pundits are accustomed to is the emerging markets of Asia (specifically China and Southeast Asia) and Latin America. But the downside is that these markets are very price sensitive. If Apple wants to keep up its impressive revenue growth, it's going to have to put out a lower-cost alternative. To be sure, I don't think a warmed-over last year's deluxe model of a 4s or 5 is going to attract this segment, not with all the other big boys wooing them. Apple's going to have to do something special for this group. Apple doesn't have to address the entire segment but should instead aim for the top -- I'm guessing -- 10% where people are up and coming but not quite there in the deluxe group. Even BMW, Mercedes-Benz and Audi are launching products for them. IMO, if this type of market is important enough to get the attention of the top three luxury car makers, it's where Apple should be looking too. It's not an easy puzzle for Apple to solve, though. I can't imagine what an iPhone Lite might look like or what features it can have to distinguish it from the iPhone Deluxe / Classic without looking cheap and nasty. Apple needs to take care it doesn't make the buyers of these phones feel like they're an afterthought.