Is it so? Is Apple going to decrease the prices of the iPhones? Well, we can expect this finally that people in developing countries may also use these awesome smartphones now. Let’s have a look:
What may be the reason behind the less-expensive iPhones?
The reasons which may be stated as responsible for this step of Apple may be any of the following:
- Growth of the company’s profits has slowed down in response to a saturated market of handsets in America and Europe.
- Most of the people are not willing to upgrade their iPhones as it used to be happen in the previous years.
This time Apple, the most successful brand in the name of smartphones has decided to launch two new iPhones instead of one. At an event on upcoming Tuesday (10th Sep), the company is set to unveil a new iPhone which will having a faster processor at its Cupertino, California, headquarters. Besides it, another model will also be announced which will be sold at a lower cost.
A lower cost smartphones can again increase the popularity of iPhone. Especially in countries like China, where these smartphones are very popular but people can’t purchase them due to the high prices.
Apple has declined to comment on the new products. But it is expected that the model with high price will be better improvement as it will have fast processor, better camera flash and a fingerprint sensor for security. The second iPhone is expected to be a cheaper version of iPhone 5 in different colors. It will consist of a plastic case instead of Aluminum. Its price is expected to be around $300-$400.
Marketing Strategy of Apple
Talking about the position of the Apple in different countries, we should consider the 2 countries which may affect its sales most. These are China and Japan.
China, a country with highest population is an attractive target for Apple. In china sales fell 4 percent in the second quarter compared with the same quarter previous year. Whereas in Hong Kong the sales were down about 20 percent. Apple sells its phones in China through a major network operator, China Telecom but it slipped into the sixth place among smartphone makers in the second quarter with a share of 4.8 percent only.
In another country Japan, where Apple is much stronger; is facing a renewed challenge from domestic smartphone makers like Sony. Company has struck a deal to sell the iPhone with the country’s biggest mobile phone carrier, NTT Docomo. Docomo has 60 million customers, but it has been losing the market share to Japan’s other two main mobile operators, SoftBank and KDDI. Both these have been marketing Apple’s phones aggressively, giving Apple a share of 40 percent of smartphone sales in the first quarter.
According to the past history it is expected that there will not be any compromise with the quality of iPhones, no matter they are going to be little cheaper due to the increasing competition. This will give a chance to middle-class people in the developing countries to have an iPhone with them which is a well-known and one of the most famous brands in the market of smartphones.
Don’t forget to tell us what do you think about this strategy of Apple? Share your views via comment sections. We will be happy to know your views.