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> This is another case of Apple skating to where the puck is going to be in maybe 2 or 3 years time. That phrase doesn't mean what you think it means. It has n
by Touche 13y ago
> This is another case of Apple skating to where the puck is going to be in maybe 2 or 3 years time.
That phrase doesn't mean what you think it means. It has nothing to do with planning for a long product life.
"Where the puck is going" is towards affordable off-contract phones and cheaper carrier monthly costs. The 5C is Apple doubling down on the carrier subsidy model. It's the model that makes the 5C seem competitively priced.
It's ironic because Apple is often credited as standing against carrier power, when in reality the status quo is exactly what will allow Apple to keep making those legendary profit margins on iPhones.
Once unsubsidized becomes the norm (as started by T-Mobile and now being adopted by others) they're going to be forced to compete on price at the expense of margins. They can stay exclusively on the high end if they want, but the high is going to be ~300-400 at most.
That's where the puck is going. Selling a 2012-grade 5C for competitive price in 2015 is not "where the puck is going".
- simonh 13y ago>That phrase doesn't mean what you think it means. It has nothing to do with planning for a long product life. It means acting now to best position yourself for the future. I absolutely agree with you that affordable off-contract phones are going to be a big part of the future. Previous iPhones were premium products that were too expensive to manufacture for that to be viable, but the 5C is designed to be much cheaper to make. While it's selling at premium prices now it's far, far better positioned to become a strong medium end product in future.