Apple grabs a high-fashion exec, but its next big moves are very mainstream

“Paul Deneve is leaving his job as head of high-end fashion house Saint Laurent to return home to Apple, where he worked in the 1990s,” Mark Rogowsky reports for Forbes.

“Chief exec of company formerly known as YSL takes lesser job at former company to work on ‘special projects’ and report directly to CEO Tim Cook,” Rogowsky reports. “All very exciting and doubtless will produce some intriguing initiatives for Apple. But while news of Deneve’s hire splashes around on the surface, lurking beneath the water are much bigger happenings in Cupertino around the iPhone and Apple TV. They may seem rather prosaic, but they suggest major strategic shifts are underway.”

Rogowsky reports, “While Apple has spent the last several product cycles demoting the last two iPhones into lower-priced categories, what it hasn’t done yet is explicitly targeted lower price points for its smartphone… If the low-cost phone is too good and too available globally, it can and will cannibalize sales of the higher-margin iPhone 5S… The solution here seems obvious, even though Apple has been reluctant to take it… Apple can differentiate here simply by moving the premium product up in size — perhaps not to the 5-inch screens of some Android models, but somewhere above the 4-inch size of iPhone 5 — while keeping the low-cost model on the 4-inch screen.”

Read more in the full article – recommended – here.

8 Comments

  1. I think it’s backwards. Put the big screen on the cheap one. Those huge Samsung phones look like toys. They’re ridiculous. The iPhone 5 is the classiest phone on the planet. I want my tiny iPhone in my pocket and when I’m out to dinner, and bigger iPad when I need it. The kids can have the huge, colorful, more playful, cheaper, plastic iPhone X.

  2. All the pundits and analysts say Apple should make an iPhone with a bigger screen. Pundit Rogowsky has offered his opinion.

    I wonder where Apple would be today if they tried to follow the suggestions of ALL the pundits and analysts? Huge plastic phones, mediocre tablets that no one wants, and a crazy fragmented OS. Oh, wait, no, that’s Samsung.

  3. I think analyst dude is missing the obvious and forgetting about iWatch and how Deneve is coming in to help market and strategize it as a fashion item…

  4. Wait, I’m not sure if some of you are actually reading this. It says that he’s suggesting Apple make the premium phone larger than 4 inches, while keeping the plastic cheap phones at the 4 inch mark. I think this would be very smart move and I for one would love to finally have a real bigger screen on my iPhone instead of the artificially ‘bigger’ 4 inch screen which afforded no additional usability or content other than another row of icons. I would love a bigger screen on my iPhone as long as they actually utilized the addition space with more than icons. I hope this happens.

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