Derrick
ლ(ಠ_ಠ )ლ
- Joined
- Nov 22, 2010
- Messages
- 5,085
- Reaction score
- 5
Let me apologies at the start for yet another blog on the iPhone. I too am rather tired of the whole deal, but what has been rather intriguing over the last while is to see how much of an impact the iPhone is actually having with all it’s spin-offs. For example, the latest American Idol winner is releasing his single “Light On” as part of a $1.99 iPhone app featuring a virtual lighter. The song starts to play when the lighter is flicked on. An absolute gimmick, but just watch the money roll in…and the copy-cats.
What caught my attention though, is that with all the iPhone specific bits and pieces that individuals or companies are releasing to try and milk the iPhone’s popularity, a small tweak in the pricing could set the iPhone up for world domination.
Analyst Charlie Wolf with Needham Research released a research note earlier today that Apple may be wise to slash the price of the iPhone by R1500. He suggested that the company has room to do so financially, and the new, drastically more affordable device would allow them to take control of the smartphone market.
He estimates the average unsubsidized price of the iPhone to be around R6750, giving Apple a 50% gross margin on the device. He believes that Apple would do good to decrease that margin to make the iPhone more affordable. At this stage, he claims that a R1500 price cut in the device would be a devastating blow to competitors, a prospect that seems all the more likely (if not somewhat unnecessary) since it’s already outselling all other smarphones in the US.
What caught my attention though, is that with all the iPhone specific bits and pieces that individuals or companies are releasing to try and milk the iPhone’s popularity, a small tweak in the pricing could set the iPhone up for world domination.
Analyst Charlie Wolf with Needham Research released a research note earlier today that Apple may be wise to slash the price of the iPhone by R1500. He suggested that the company has room to do so financially, and the new, drastically more affordable device would allow them to take control of the smartphone market.
He estimates the average unsubsidized price of the iPhone to be around R6750, giving Apple a 50% gross margin on the device. He believes that Apple would do good to decrease that margin to make the iPhone more affordable. At this stage, he claims that a R1500 price cut in the device would be a devastating blow to competitors, a prospect that seems all the more likely (if not somewhat unnecessary) since it’s already outselling all other smarphones in the US.