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

To: Doren who wrote (148757)	1/22/2013 3:22:36 PM
From: slacker711	1 Recommendation Respond to of 213181

It seems to me the cost of designing developing a cheap smaller plastic phone would outweigh any cost savings. I think you are way overestimating design costs. We are talking about a unit that would be expected to sell tens of millions of units per year. It doesnt take much of a cost reduction to justify the expense. The 4 is selling for $450. I think most people are thinking that Apple should try and get a handset into the $300-$350 range. Slacker

To: Doren who wrote (148757)	1/22/2013 3:23:32 PM
From: pyslent	2 Recommendations Read Replies (4) \| Respond to 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.