Strategy Cheap iPhone is Not Cheap

Strategy " Cheap iPhone " is Not Cheap

Before its emergence , iPhone 5C crowded reported as the iPhone version of the " cheap " is targeting the middle segment . The price is expected to be in the range of 400 to 500 U.S. dollars .

However , as quoted from The Verge , the fact that there is a little different than expectations because iPhone 5C still include relatively " expensive " price range reached 549 U.S. dollars, or USD 6.2 million for the 16GB version without a contract .

5C iPhone is Apple's answer to the threat of Android smartphones in the middle segment . Technical specifications which include the A6 processor , 4 -inch screen , front camera , a relatively large battery , and confirms that the plastic casing .

The position of the iPhone price iPhone 5S 5C wedged in the upper segment and the iPhone 4S 8GB in the lower segment . Basically , this device is the iPhone 5 plastic shell wrapped in a bandage colorful to attract consumers with new designs .

Increase margin

Then , for what Apple released this product ? 5C iPhone iPhone 5 as well as replace the production is stopped , probably so that they do not compete directly . Rather than lowering the price the previous model , Apple introduced a new model that is valued less .

The move was apparently waged to offer products that fit in the middle of the declining average selling price of the iPhone ( ASP ) in the market price - sensitive markets such as China . In 2009 , ASP iPhone is in the range of 613 dollars . But in the second quarter of this year that number dropped to 581 U.S. dollars .

Apple is offering the iPhone 4S on the bottom line with a storage capacity of 8GB which is whittled down . However , if Apple managed to attract consumers to buy the iPhone 4S instead of iPhone 5C , the margin taken by the company may be maintained or even improved .

Compared to the old model is already starting to feel ancient , colorful iPhone that contains the previous generation iPhone hardware will probably look more attractive in the eyes of consumers . After all , as long as Apple is known to encourage consumers to spend more money for a device that is a little nicer .

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