hardincap Posted September 10, 2013 Share Posted September 10, 2013 bold move by apple to ignore calls to address the mid tier market. the 5c costs $550 out of contract; its simply uncompetitive at that price in china compared to xiaomi at $330 and larger screen. perhaps they have scored a deal with china mobile to subsidize it, but if not, things might get ugly for apple. Link to comment Share on other sites More sharing options...
Palantir Posted September 10, 2013 Share Posted September 10, 2013 I think there is an implicit understanding that the $550 iPhone 5C is their new "mass market" product which they will try to push rather than the 5S, which will become the "premium" handset. This move will lower the ASP while potentially retaining margins, so in a sense they are moving to a lower price point. Take note though, they are still going to sell the older 4S at $450, and my theory is: We will soon see a plastic iPhone Mini at the 450 price point, it can be smaller, at say 3.5 inches, it will be more cheaply made like the 5C, so they could sell the C's internals at the same margins. Link to comment Share on other sites More sharing options...
hardincap Posted September 10, 2013 Share Posted September 10, 2013 I think there is an implicit understanding that the $550 iPhone 5C is their new "mass market" product which they will try to push rather than the 5S, which will become the "premium" handset. This move will lower the ASP while potentially retaining margins, so in a sense they are moving to a lower price point. Take note though, they are still going to sell the older 4S at $450, and my theory is: We will soon see a plastic iPhone Mini at the 450 price point, it can be smaller, at say 3.5 inches, it will be more cheaply made like the 5C, so they could sell the C's internals at the same margins. $550 is a premium price, therefore cannot be sold as a "mass market" device Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 10, 2013 Share Posted September 10, 2013 Interesting. They're ignoring marketshare. And commoditization. ;) Link to comment Share on other sites More sharing options...
Palantir Posted September 10, 2013 Share Posted September 10, 2013 Interesting. They're ignoring marketshare. And commoditization. ;) Then why are they selling the 4S? Link to comment Share on other sites More sharing options...
hardincap Posted September 10, 2013 Share Posted September 10, 2013 iPhone 5C to cost 4,488 RMB (or $733) in China. wow. w/o subsidies, this is DOA in China. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 10, 2013 Share Posted September 10, 2013 Interesting. They're ignoring marketshare. And commoditization. ;) Then why are they selling the 4S? Options. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 11, 2013 Share Posted September 11, 2013 iPhone 5C to cost 4,488 RMB (or $733) in China. wow. w/o subsidies, this is DOA in China. Wanna bet? Link to comment Share on other sites More sharing options...
hardincap Posted September 11, 2013 Share Posted September 11, 2013 iPhone 5C to cost 4,488 RMB (or $733) in China. wow. w/o subsidies, this is DOA in China. Wanna bet? haha, so juvenile ::) Link to comment Share on other sites More sharing options...
Parsad Posted September 11, 2013 Share Posted September 11, 2013 I hope these guys come up with something life-changing before Christmas! ;D So far, I see nothing to differentiate Apple from anyone else. They've been rocking the status quo like nobody's business since Job's died. Maybe they should buyout Tesla and Elon Musk! I'd like to see what that guy could do with $100B! Cheers! Link to comment Share on other sites More sharing options...
Guest wellmont Posted September 11, 2013 Share Posted September 11, 2013 I think there is an implicit understanding that the $550 iPhone 5C is their new "mass market" product which they will try to push rather than the 5S, which will become the "premium" handset. This move will lower the ASP while potentially retaining margins, so in a sense they are moving to a lower price point. Take note though, they are still going to sell the older 4S at $450, and my theory is: We will soon see a plastic iPhone Mini at the 450 price point, it can be smaller, at say 3.5 inches, it will be more cheaply made like the 5C, so they could sell the C's internals at the same margins. $450-$550 won't get er done in emerging markets. but maybe they are not interested in maintaining share of the smartphone market globally. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 11, 2013 Share Posted September 11, 2013 I hope these guys come up with something life-changing before Christmas! ;D So far, I see nothing to differentiate Apple from anyone else. They've been rocking the status quo like nobody's business since Job's died. Maybe they should buyout Tesla and Elon Musk! I'd like to see what that guy could do with $100B! Cheers! They have the first touch sensor on the phone. They also have a big lead on opening up an interface for the car. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 11, 2013 Share Posted September 11, 2013 iPhone 5C to cost 4,488 RMB (or $733) in China. wow. w/o subsidies, this is DOA in China. Wanna bet? haha, so juvenile ::) 6 months and we'll see. Link to comment Share on other sites More sharing options...
Palantir Posted September 11, 2013 Share Posted September 11, 2013 Yes I don't think Apple is trying to dominate that market per se but rather develop a core group of users. But I think they will also bring a 400s device in the future. It is disappointing to see just a high-midrange device. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 11, 2013 Share Posted September 11, 2013 Yes I don't think Apple is trying to dominate that market per se but rather develop a core group of users. But I think they will also bring a 400s device in the future. It is disappointing to see just a high-midrange device. [/quote They probably debated this for a while and decided that it was not the right thing to do at this time. Link to comment Share on other sites More sharing options...
jeffmori7 Posted September 11, 2013 Share Posted September 11, 2013 Nice improvement not mentioned yet, Pages, Keynote and Numbers will be free for new devices with iOS7. So finally a productivity suite that will please most users enough so they won't need Office! And I hope it will be part of iPad apps also. If Apple are stubborn enough to keep those products, at least I think it's nice to have them coming along with the OS. iPhone and iPad have just become more productive and useful tools without having to buy third-party apps. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 11, 2013 Share Posted September 11, 2013 I hope these guys come up with something life-changing before Christmas! ;D So far, I see nothing to differentiate Apple from anyone else. They've been rocking the status quo like nobody's business since Job's died. Maybe they should buyout Tesla and Elon Musk! I'd like to see what that guy could do with $100B! Cheers! You need to spend some time watching the keynote. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 11, 2013 Share Posted September 11, 2013 Interesting. They're ignoring marketshare. And commoditization. ;) Then why are they selling the 4S? Options. I take that back. You might be on to something. The 4S is probably a better vehicle for market penetration than the 5c. Now they have a latest and a greatest, a middle offering appealing for people who love color. You can now drop the prices in the 4s aggressively without affecting the other two segments. Further, the manufactured cost of the 4S is probably very low because it shares a lot of components with the 3 year old iPhone 4 in other words - a lower margin hit. It will be interesting how they price the 4S in their weaker markets. In any case, they are going to get a fair amount of growth through their expanded distribution. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 11, 2013 Share Posted September 11, 2013 One of the reason why DoCoMo was a hold out was that, unlike other operators, they have a strong over-the-top content and services business. Apple won't allow them to add their stuff over the stock iPhone. Apple wants to keep the iPhone an Apple experience only. For DoCoMo, it would mean losing a chunk of their content business to the app store. For the longest time, neither budget and they played chicken. Now, some thing changed. Wanna guess in the iPhone has the DoCoMo experience? Guess who blinked? http://www.bloomberg.com/news/2013-09-10/docomo-ends-iphone-holdout-to-win-back-customers.html Link to comment Share on other sites More sharing options...
Parsad Posted September 11, 2013 Share Posted September 11, 2013 I hope these guys come up with something life-changing before Christmas! ;D So far, I see nothing to differentiate Apple from anyone else. They've been rocking the status quo like nobody's business since Job's died. Maybe they should buyout Tesla and Elon Musk! I'd like to see what that guy could do with $100B! Cheers! You need to spend some time watching the keynote. I watched CNET's live blog which was very good. I thought the food they provided the journalists was more creative than anything they showcased...take a look at CNET's pics. ;D http://live.cnet.com/Event/CNETs_Apple_Sept_10_event_live_blog?Page=0 Yes, they continue to refine the software and products, but they are only maintaining the moat, not widening it. Still plenty of evidence that under Cook, R&D is not pushing the boundaries. I expected more, and my expectations aren't very high! Cheers! Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 11, 2013 Share Posted September 11, 2013 I hope these guys come up with something life-changing before Christmas! ;D So far, I see nothing to differentiate Apple from anyone else. They've been rocking the status quo like nobody's business since Job's died. Maybe they should buyout Tesla and Elon Musk! I'd like to see what that guy could do with $100B! Cheers! You need to spend some time watching the keynote. I watched CNET's live blog which was very good. I thought the food they provided the journalists was more creative than anything they showcased...take a look at CNET's pics. ;D http://live.cnet.com/Event/CNETs_Apple_Sept_10_event_live_blog?Page=0 Yes, they continue to refine the software and products, but they are only maintaining the moat, not widening it. Still plenty of evidence that under Cook, R&D is not pushing the boundaries. I expected more, and my expectations aren't very high! Cheers! Watch their actual presentation. And yes, their fingerprint sensor pushes boundaries. Think carefully about what a fingerprint sensor means. Oher vendors tried to ship one with their phone and failed. http://www.ubergizmo.com/2013/07/samsung-reportedly-shelves-fingerprint-sensor-plans-for-galaxy-note-3/ They have pushed into cars under Cook. Again a big area where other vendors are behind. They have done their biggest design of their OS and completely changed the design direction of the OS. They have added a completely new kind of chip. And they've just made a massive shift to a 64-bit architecture. Another first. Under Cook they have now closed a long holdout - DoCoMo. And they're likely to close China Mobile. And massive change. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 11, 2013 Share Posted September 11, 2013 Nice improvement not mentioned yet, Pages, Keynote and Numbers will be free for new devices with iOS7. So finally a productivity suite that will please most users enough so they won't need Office! And I hope it will be part of iPad apps also. If Apple are stubborn enough to keep those products, at least I think it's nice to have them coming along with the OS. iPhone and iPad have just become more productive and useful tools without having to buy third-party apps. Commoditize the complement, anyone? Link to comment Share on other sites More sharing options...
Buckeye Posted September 11, 2013 Share Posted September 11, 2013 Watch their actual presentation. And yes, their fingerprint sensor pushes boundaries. Think carefully about what a fingerprint sensor means. Oher vendors tried to ship one with their phone and failed. What does their fingerprint sensor mean? Besides is being somewhat cool, what purpose will it serve? Link to comment Share on other sites More sharing options...
tombgrt Posted September 11, 2013 Share Posted September 11, 2013 Watch their actual presentation. And yes, their fingerprint sensor pushes boundaries. Think carefully about what a fingerprint sensor means. Oher vendors tried to ship one with their phone and failed. What does their fingerprint sensor mean? Besides is being somewhat cool, what purpose will it serve? Watch their actual presentation. And yes, their fingerprint sensor pushes boundaries. Think carefully about what a fingerprint sensor means. Oher vendors tried to ship one with their phone and failed. What does their fingerprint sensor mean? Besides is being somewhat cool, what purpose will it serve? They can make a fingerprint database and hand it over to the NSA? :D At fair pricing per print... ;D Link to comment Share on other sites More sharing options...
Palantir Posted September 11, 2013 Share Posted September 11, 2013 Yes, they continue to refine the software and products, but they are only maintaining the moat, not widening it. Still plenty of evidence that under Cook, R&D is not pushing the boundaries. I expected more, and my expectations aren't very high! Cheers! Even under "He who must not be named", Apple only released major innovations every few years, a long time in between was spent making things faster, turning iPod into mini/nano/shuffle/touch, or Mac into iBook, eBook, MBP, MBA etc etc. Link to comment Share on other sites More sharing options...
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