|Feb 20, 2013, 10:08 AM||#1|
Apple to Target Emerging Markets with Low-Cost Phone to Launch in September at $199?
Piper Jaffray analyst Gene Munster late yesterday issued a new research note using average low-end smartphone pricing in emerging markets to argue that Apple's rumored lower-cost iPhone will launch in September with a price tag of around $199 unlocked.
Munster examined smartphone pricing on 15 different models across six international markets (Germany, UK, France, China, Brazil and India) to find that lower-end smartphones average slightly over $200 unsubsidized. In China and India, the average prices are $138 and $140 respectively, while Apple's cheapest existing phone, the iPhone 4, averages over $500.
While rumors of a lower-cost iPhone have been picking up steam in recent months, a price point as low as $199 would seem to be overly aggressive for the company given its refusal to sacrifice quality to achieve a low price. Tim Cook noted at last week's Goldman Sachs conference that "the only thing [Apple] will never do is make a crappy product", and it remains difficult to see how Apple could provide the iPhone experience at such pricing.
Article Link: Apple to Target Emerging Markets with Low-Cost Phone to Launch in September at $199?
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