4 ms·

Seems apple is boxed in by the ipod touch @ $299.[1] Too bad. But they are protecting their iPhone market. They won't go below that, because at some stage it m

by 001sky 14y ago

Seems apple is boxed in by the ipod touch @ $299.[1] Too bad. But they are protecting their iPhone market. They won't go below that, because at some stage it makes sense to use a throw-away phone and a data-only iOS device. ________ [1] 32GB model, no 16GB model in the iPhone5 form factor. At $199, you have to down to 16GB and step back a generation in tech. They clearly don't want people buying into the iphone5 form-factor at $199, no contract, etc.

technoslut 14y ago
I don't think that Apple is protecting the iPod touch but they are definitely are protecting iPhone margins. ThiPod touch is selling less year over year. Apple's growth is starting to decrease. They're no longer getting 100% year over year growth for iOS devices. Even Gruber assumed the 3GS would be available in poorer countries but it hasn't. Apple is going to have to eventually find growth beyond the iPhone and iPad unless they're willing to lose subsidies for the iPhone or take less margins for the iPad to increase growth.
- alwillis 14y ago
  I don't see why Apple has to reduce the margins on the iPad or the iPhone when they can't keep up with demand. They sold 5 million iPhone 5s the first weekend and they could have sold a lot more if they could have made more. The growth trajectory of the iPad is unprecedented--100 million in 2.5 years. Apple is smart about not getting into the situation of having to reduce margins on products--they use economies of scale to reduce costs.
  - technoslut 14y ago
    Growth, or lack thereof, affects stock value which also can affect future talent employment and current employees. While the iPad may have future growth ahead, many will not pay the unsubsidized price for the iPhone, which is where most of Apple's current valuation lies. Rumor has it that Apple is only getting ~25% margin on the iPad mini which is unprecedented.

by 001sky 14y ago

technoslut 14y ago

I don't think that Apple is protecting the iPod touch but they are definitely are protecting iPhone margins. ThiPod touch is selling less year over year. Apple's growth is starting to decrease. They're no longer getting 100% year over year growth for iOS devices. Even Gruber assumed the 3GS would be available in poorer countries but it hasn't. Apple is going to have to eventually find growth beyond the iPhone and iPad unless they're willing to lose subsidies for the iPhone or take less margins for the iPad to increase growth.

alwillis 14y ago
I don't see why Apple has to reduce the margins on the iPad or the iPhone when they can't keep up with demand. They sold 5 million iPhone 5s the first weekend and they could have sold a lot more if they could have made more. The growth trajectory of the iPad is unprecedented--100 million in 2.5 years. Apple is smart about not getting into the situation of having to reduce margins on products--they use economies of scale to reduce costs.
- technoslut 14y ago
  Growth, or lack thereof, affects stock value which also can affect future talent employment and current employees. While the iPad may have future growth ahead, many will not pay the unsubsidized price for the iPhone, which is where most of Apple's current valuation lies. Rumor has it that Apple is only getting ~25% margin on the iPad mini which is unprecedented.