“It’s amazing what happens to your shares when you’re Apple and there are rumors you will release a cheaper iPhone — your shares rise almost 1% to $529.74,” Richard Saintvilus writes for TheStreet. “According to TechCrunch, not only is Apple planning to release a cheaper phone, the device, which is said to be an 8GB version of the iPhone 5c, will be unveiled as early as Tuesday.”
“We’ve been down this road before and it seems investors haven’t learned anything,” Saintvilus writes. “Aside from the popular talking points about Apple’s perceived lack of innovation, the company’s margins continue to be cited as impediments to the stock’s upward movement.”
“So if this report is true, which pegs this 8GB iPhone at $85 less than the regular 5c, it doesn’t make financial sense for Apple to pursue this route. It will only add more margin pressure,” Saintvilus writes. “The other thing is when combining apps, photos, videos and so on, I just don’t see how an 8GB device will support the volume of data that would be required to make this phone useful.”
Read more in the full article here.
Related article:
Apple reportedly launching less expensive 8GB iPhone 5c on March 18th – March 17, 2014