Why now is the best time for Apple to reduce prices

Products fruit company from Cupertino has not always been the lot of fashionistas and people who want to emphasize their status. Initially Apple was a Computer manufacturer are available in a wide range of people for consumer electronics, by example proving to the world that computers can be compact and inexpensive. Maybe it’s time to go back to basics?

According to some analysts, however, as most potential customers, Apple needed to change course on the issue as quality, but less expensive devices. These sentiments have increasingly captured the minds of the once ardent supporters of the company who are not willing to put up with the steadily continuing increase of prices in local currency. (It turns out that economic stagnation is observed not only in Russia and CIS countries, but also became the Bane of many depend on dollar States).

Indicator of deteriorating financial situation of potential consumers was the recent statement by Tim cook about the first 8 years the decline in iPhone sales. The expected decline in the proportion of “fruit” of smartphones will lead to significant losses for Apple on the stock market and the reduction in operating profit to several billion annually.

Against the background of these unpleasant events, the onset of which almost inevitably, the leadership of the company from Cupertino have any difficult dilemma. But to reduce the cost of the once highly expensive devices and to define a new vector of development in which no premium, then completely erase and abandon past achievements as a manufacturer of luxury vehicles. Another possible scenario is to leave everything as is and watch is steadily losing positions and lost profits. The more that time to think Tim cook and the investors not so much.

The first manifestation of the chosen path, we will see in March at the presentation of iPhone 5se, which is intended to replace the flagships of 2013 and 2014. Seemingly quite loyal price tag of $ 550 is unlikely to spur consumer interest in the novelty, not allowing her to take a seat almost cost iPhone 5s. The latter, by the way, in Russia you can buy a bit more than 20 000.

What do you think about this? Feel free to comment.

Clifton Nichols

Clifton Nichols

Hi! I’m Clifton and I am a full-stack engineer with a passion for building performant and scalable applications that are beautiful and easy to use.

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