If Apple
Inc.(NASDAQ:AAPL) plans on maintaining its market share, it needs to do
something about the fresh new challenge its iPhone business is about to come
across.
It is being anticipated
that the next sign of growth in the smartphone market will come from the
emerging markets in which iPhones are costly for customers.
The iPhone maker has to
plan on selling a cheaper phone to people, who find iPhones expensive to buy.
Mobile carriers are
responsible for subsidizing iPhone sales in the US. However, things are
different in the developing markets like India in China. In such nations,
consumers need to pay entire cost for their handset. Most of the time, it is
not possible for consumers to afford an iPhone.
Analysts strongly
believe that Apple will be manufacturing an inexpensive iPhone so as to make a
mark in such markets.
Analyst Toni Sacconaghi
was told by Tim Cook, back when he used to be the COO of Apple, that he wants
Apple not to be just for the rich consumers but for everyone. It seems that he
was indicating at an inexpensive iPhone.
The iPhone 4 may be
cheaper than the iPhone 5, but it is definitely not cheap enough to help Apple
in being successful in the developing markets.
Peter Misek, an analyst
at the Jefferies has created a new memo and said that there seems to be a good
chance of Apple launching an inexpensive iPhone in June, 2013. The phone will
be marketed at the developing and prepaid markets, particularly in Asia.
Misek also said that he
thinks an economical version of iPhone will come with apps processor and
scaled-down modem. Foxconn International Holdings has a supply chain for faculty
ranging between 200 and 200k units each day.
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