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

To: pyslent who wrote (148761)	1/22/2013 3:26:43 PM
From: sandeep	Respond to of 213182

There is no reason to get into 150$ phones. There are enough people who can be sold a phone for $400 on an installment plan. Use the cash!

To: pyslent who wrote (148761)	1/22/2013 3:29:28 PM
From: slacker711	1 Recommendation Respond to of 213182

And to do so without canibalizing the high end iPhones is tricky. I had thought that segmenting by wireless technology would help some but VZ's numbers seem to prove that wrong. They might be able to segment by spectrum bands. You could leave off the US and Japanese bands and that would solve quite a bit of the cannibalization problem. Slacker

To: pyslent who wrote (148761)	1/22/2013 3:45:36 PM
From: iggyl	Read Replies (2) \| Respond to of 213182

Why would Apple want to move that far down market, gaining minimal net profit, cannabilizing to some degree sale of higher priced, higher ASP phones all the while incurring support costs of customers who are unlikely to buy additional services but use considerable support resources.

To: pyslent who wrote (148761)	1/23/2013 3:07:28 PM
From: Doren	Read Replies (1) \| Respond to 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.