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

To: Ryan Bartholomew who wrote (171932)	7/21/2014 3:16:43 PM
From: pyslent	Respond to of 213182

Absolute price difference the same, but many consumers don't digest it that way and they see it as "the other phone costs twice as much". Yet it is the high subsidy markets where the iPhone and the 5S in particular are the most dominant. In the US, very few people are deterred by the fact that the 5S costs twice as much as the 5C at retail (or 4X as much, as the 5C has been widely discounted to $50 since day 1). They just buy the 5S. I'd say it's because they are not price sensitive. The 5C has provided Apple with a tool to test elasticity on a market-by-market basis. In some areas, maybe the 5C does better relative to the 5S. There, a price hike would probably be met with some lost sales. Elsewhere, Apple could probably raise prices without missing a beat.