“Apple doesn’t need a cheaper iPhone. They need a more expensive one — much more expensive. Here’s why,” Mike Elgan writes for Cult of Mac. “Android gets big market share with small profits…These phones for the masses are not profitable Samsung Galaxy S3s, but instead no-name, no-margin Chinese-made pieces of junk, for the most part. They use Android in part because it’s free… Although there are hundreds of companies making Android phones, Apple makes far more money in mobile phone profits than all of them combined.”
“To slug it out in the muck with cheap Chinese phones for small margins would not only tarnish Apple’s image, it simply wouldn’t be worth the tech support, supply chain and manufacturing trouble,” Elgan writes.Instead of a cheap, low-margin phone Apple should come out with an expensive, high-margin phone. A satellite phone.”
Elgan writes, “Apple should develop it’s own high-speed, high-capacity global satellite network, which it could do for less than $5 billion, I would imagine. Note that running its own satellite system would be expensive. But it would make Apple a wireless carrier, and a global one — for decades… I would guess off the top of my head that Apple could sell a satellite iPhone for, say, $1,500 unlocked, or $600 to $800 with a contract.”
Much more in the full article here.
MacDailyNews Take: iSatphone®.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]