A man named Gurman said that Apple should make a cheaper iPhone to sell in poorer countries and get more people to use their phones. He thinks they can do this by making some changes to the phone, but it might not be what Steve Jobs would have wanted. Read from source...
- The author seems to have a negative bias against Apple and Steve Jobs, as he constantly quotes them in a derogatory manner. For example, he uses their words out of context to imply that they are opposed to the idea of lowering the price point, when in reality they might have had different reasons or strategies for not doing so.
- The author also seems to have an irrational fear of Apple losing its premium brand image if it lowers the price point, without considering the potential benefits and opportunities that could arise from expanding its market share and customer base in emerging markets. He ignores the fact that many successful companies, such as Tesla
and Xiaomi
, have managed to maintain their premium brand image while offering affordable products to a wider audience.
- The author's suggestion of using an all-screen LCD approach instead of the pricier OLED display is based on a false dichotomy, as there are other ways to reduce the cost of production without compromising on quality or user experience. For example, Apple could use recycled materials, innovative manufacturing techniques, or partnerships with local suppliers in emerging markets to lower its costs and still offer a high-quality product.
- The author's claim that reducing the number of cameras, sporting an older but still capable chip, and having a plastic shell would result in a low-cost iPhone is based on flawed logic, as these features are not necessarily correlated with the price point of a product. Apple has proven in the past that it can offer high-quality products with minimalist design and advanced technology, while still maintaining a premium brand image and profitability.
- The author's argument that a low-cost iPhone would build the Apple brand in developing countries is based on an assumption that these markets are only interested in cheap products, which is not necessarily true. Many consumers in emerging markets value quality, design, and innovation, and are willing to pay for premium products if they offer a superior user experience and meet their needs.
neutral
Key points:
- The article suggests that Apple should lower the price point of its iPhone to $250 to penetrate emerging markets.
- The author cites analyst Gurman who proposes ways to achieve this by using cheaper materials and design choices.
- The author acknowledges that this would go against Steve Jobs' vision of not offering low-quality products, but argues that it could benefit Apple in the long run.
The article suggests that Apple should consider lowering the price point of its iPhone to $250 in order to make meaningful inroads into emerging markets. This would involve using an all-screen LCD approach, reducing the number of cameras, sporting an older but still capable chip and having a plastic shell that retains Apple's industrial design. The risks involved in this strategy include diluting the premium brand image of Apple, cannibalizing sales of higher-priced models and facing increased competition from other low-cost smartphone manufacturers. A potential reward for this investment recommendation could be a significant increase in market share and revenue in emerging markets, as well as an opportunity to upsell pricier devices to customers who may not have previously been able to afford them.