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Most readers would rub their eyes after reading the headline. Apple
is notorious for pricing their products highly when compared to the
other companies in the industry. However, the Cupertino giant has
revealed plans to launch a cheaper iPhone in developing markets. The
company has been facing increased competition from devices which run on
Android, as they are priced lower and affordable for a larger segment of
the audience.
Going Against Steve Jobs’ Ideology
Steve Jobs, the founder of Apple, had been strict with the policy of
pricing products at a certain level. He was a staunch believer in
quality over quantity and had followed the principle up till his death.
Now it seems the people in charge have decided to break away from Jobs’
principle and adopt a new policy. Of course, circumstances change over
time but it has been just over a year since Jobs passed away. Since
then, Apple has faced a number of setbacks.
Sales in China Encouraging
Apple recently revealed that it was selling a record number of
iPhones in China. Previously, the market had been dominated by
Asia-based companies like Samsung and Nokia. Yet, the launch of the
iPhone 5 saw two million units of the smartphone being sold within a
week. That is at par with some of the leading markets for Apple’s
products, particularly in the developed countries. Hence, it shouldn’t
come as a surprise that Apple wants to tap into the growing demand in
developing markets.
Growing Competition a Constant Worry
While the sales in China have been surprising and more than Apple
itself expected, it is true that the growing competition in the market
has been a constant source of worry for the company. Till now, Apple has
been steadfast with its pricing policy, refusing to budge even when the
market called for it. Their focus remained on providing users with the
best possible experience rather than making the devices affordable.
Price Expected to be $99 to $149
Since the news broke out that Apple is planning a cheaper iPhone,
people were wondering how far they are going to lower the price. After
all, what Apple considers cheap is quite expensive for most consumers
and companies in the market. Thus, it was surprising when a report
revealed that the price of the cheaper iPhone is expected to be from $99
to $149. In that price range, one could expect Apple to run away with
the market share the world over.
According to the reports which have surfaced, Apple is considering
changing the material they use for making the newer iPhones. The iPhone 5
is made from aluminum while the previous one was made of glass. For the
cheaper version, they might elect to go along with plastic
polycarbonate. That would reduce the cost of making the iPhones
considerably, enabling Apple to lower the price.
There may be some before anything materializes while there is the
chance nothing does. The newer iPhone would be in the league of the iPad
Mini, a smaller and cheaper version. A release by the end of 2013 is
being rumored but only Apple knows when it will happen.
