JF Mezei <
jfmezei...@vaxination.ca> wrote
> Rod Speed wrote
>> JF Mezei <
jfmezei...@vaxination.ca> wrote
>>> Apple's pattern has been to make each new model loaded with more
>>> features.
>> Only with the top of the range new models.
> Except for the 5c, Apple never introduced a NEW low end model.
Which just happens to be the only non top of the range model introduced NEW.
> New phones were always the high end, relegating
> the older existing phones as low end.
And the 5se may well be another like the 5c.
> Building a "cheap" phone like the 5C didn't
> seem to be a great endeavour for Apple.
Apple clearly feels otherwise given that
they are about to do it again with the 5se,
> It would still be more expensive than competitor's cheap phones.
Apple has never given a damn about their competitor's cheap
phones and has chosen to not bother with that end of the market.
They have in fact sold plenty of the low end iphones that they they
choose to continue to sell when they offer new high end models.
> My *guess* is that the 5se will have feature parity with 6s,
Or it might not have quite such a fancy camera...
> but with smaller form factor which is a market Apple
> realised is still big enough to warrant serving.
I bet its not identical to a 6s in all but size.
> WHile 5se will be cheaper than the 6s this march
Particularly if its not identical to a 6s in all but size.
> it isn't clear to me how Apple will position it against
> the 6 which has fewer features, slower CPU etc.
It remains to be seen how long they keep selling the 6 for.
> And by fall, when the 7 and 7+ are launched,
> the 5se becomes an "older generation" phone,
Apple has always continued to sell those.
> and if Apple ditches the 6 to make the 6s the lower
> end, then the 5se becomes the most affordable
> phone (parity of featuires with 6s but smaller screen)
I find it hard to believe it will be identical to the 6s in
all but size. IMO it makes more sense to have not such
a fancy camera given that that camera isnt that cheap
and that there are plenty that don’t need such a fancy
camera and would prefer a lower price.
> In 2017, what is possible is that the iphone 8 will come out
> in 3 sizes and Apple may then keep the 7 and 5se as low end.
Time will tell.
>> They have one hell of a margin and can do that if they choose to.
> The Apple financial telecomference made it pretty clear that with
> currency fluctuations, they decided to maintain margin instead of volume.
But that isnt necessarily true with the low end model.
> Also, as you recall, when the 5c came out, the Wall Street Casino
> Analysts complained that it may drive Apple's margins down.
And they got that wrong, as usual.
> Apple unfortunatly can't ignore this.
Corse they can.
> It has duty to shareholders to make profits on its phones,
No one is saying that they should make a loss on the 5se.
REDUCED margins isnt a loss.
> the biggest part of the business.
Still is even if they choose to REDUCE the margin on their low end iphone.
> Smasung , Xaomi, LG, Huawei don't have as much
> pressure to generate profits from their handset business.
But have a much bigger problem that their
margins on their other stuff is much worse
than Apple gets on their high end iphones.
> While 66% of its sales ate outside the USA, one would have to break
> that down betwene countries whose currency dropped a lot and
> countries whose currency remained stable or dropped just a bit.
There arent actually that many of the last, really only
China because its currency is loosely locked to the USD,
at least with countrys that matter to Apple sales wise.
> If most sales come from coutries whose
> currency was more or less stable,
It doesn’t.
> then Apple has less of a need to try to cut the retail price.
And when it doesn’t, it does.
> And if the iPhone is too expensive in Canada,
It isnt, you watch.
> they will just have lower sales without
> much a huge impact on worldwide sales.
Not if most of the non US countrys also see a similar result.
>> But the price is still well below what many pay for a laptop.
> People tend to keep laptops for far longer than a phone.
But FAR more see the price of the phone hidden
because they get the phone with their cell contract.
> And this is a problem because as phone prices rise, people
> will want to keep phones for 3 years instead of 2
Not those who get their phones on contract.
The percentage who buy their phone outright for cash is quite low.
> and this greatly affects sales in established markets.
No it does not when most don’t pay cash for the phone up front.
> This is why raising the phone prices too much has negative consequences.
In practice it doesn’t, essentially because most don’t buy their
phone for cash up front. And even with those who do, the price
paid for a top of the range iphone is still perfectly affordable
by most, even in most first world countrys outside the US.
>> There is no reason why Apple has to have the same margin on all iphones.
> Analysts only see the average margin.
Analysts are completely irrelevant.
> So the above is correct. However, because Apple may
> be reaching the limits of how expensive a phone can be,
Like hell it is. Plenty spend a lot more on a laptop
and that isnt hidden in the phone contract.
> it may not be able to increase the high end phone margins
> to compensate for lower low-end phone margins.
Apple doesn’t need to do that either. They are free
to reduce the margin on their low end iphones and
make up for that in the volume of those they sell.