“At a special event on Tuesday morning, Apple is expected to unveil two new iPhones — the first, a marquee device; the second a mid-tier one intended to be sold at a lower price that appeals to budget-conscious consumers and those in important emerging markets like China,” John Paczkowski writes for AllThingsD.
“So, what’s the price of that second, lower-priced iPhone going to be? We won’t know for sure until Tuesday, but it’s not likely to be cheap,” Paczkowski writes. “nalysts expect Apple to price the so-called iPhone 5C somewhere between $400 and $500, potentially establishing a new mainstream price band between the smartphone market’s high end and its low end. Their rationale? $400 to $500 appears to be a pricing sweet spot for smartphone buyers in China — a market of particular interest to Apple these days.”
Paczkowski writes, “If that’s the case, why not drop the iPhone 5C’s price lower still to drive further market share gains? Because doing so might sacrifice product quality and profit margins. And because, historically, Apple has done quite well for itself using mid-tier products with lots of aspirational appeal to draw budget-conscious consumers into a higher price range.”
Read more in the full article here.
MacDailyNews Take: As we wrote back in January: “You can bet that if Apple enters the pre-paid phone market in emerging markets, they most certainly will have margins and they will make a profit on each device sold.”
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]