The fact that Apple has priced its iPad mini series with $100 higher than any other mini smart tablet on the market was quite debatable. However, this might represents the key solution for introducing a more affordable iPhone.
The analysts conclude the fact that the recipe for the iPad mini might become a premium approach in the case of the next low-cost iPhone, designed by the Fruit Company. Analysts such as Mark Moskowitz and Gokul Hariharan of J.P. Morgan expect that Apple will start selling a cheaper device in the second half of 2013, with a price starting with $350. In the same time, the product’s price might reach a limit of $400.
However, the $400 price might seem too high for a cheaper product holding the Apple mark. When rumors started suggesting the fact that Apple is planning to reveal a cheaper device in order to reach multiple other markets and attract other customers, people expected a launching price of around $250. With $150 above the expected amount, the price of the low-cost device might not be that accessible as it was expected.
In the same time, the two analysts confessed the fact that the iPad mini is regarded as a “winning template” for Apple’s strategy. A contract-free iPhone priced under $400 might result in the best offering of the Cupertino-based company.
Another aspect is concerning the impact of a cheaper iPhone on other market trends. The Smartphone price pyramid might be very affected by the low-cost iPhone since the company will completely change its experience and market trend.
After the launch of the iPad mini, Apple created a new demand in the price band. The smart tablet turned into a powerful segment in the largest parts of the market. Older tablet owners upgraded from cheaper tablets to the already-famous iPad mini.
Another similar change from the Apple’s part happened 30 years ago when the company owned more than a quarter of the PC market, but the competition represented by IMB PC clones and Microsoft’s Windows platform, was pretty acerb.
In order to succeed in the Smartphone area, Apple needs to change its perspective and enhance its ecosystem advantage. At this point, Android-based platforms represent a powerful competition offering cheaper smart devices and affordable options. The Android platform is growing extremely quickly as analysts suggest. The decision of experiencing lower-cost devices might turn out to be a long-term benefit for the big Cupertino-based company.
According to some rumors, Apple plans to reveal a low-cost iPhone later this year. In this way, the Fruit Company will gain market share in emerging markets such as China or Brazil, where people do not usually purchase phones on contract.