Sunday, September 15, 2013

iPhone 5C and Apple's Flawed Strategy

Apple iPhone 5C - the cheap looking colored plastic phone, that isn't cheep
Pricing unlocked iPhone 5C at $549, Apple has simply lost the opportunity to make inroads into developing markets such as China, India and Indonesia, where competitors like Samsung have garnered a large market share by flooding it with dozens of affordable smartphones powered by Android.

Having two iPhone models was unthinkable in Steve Jobs era. Having a cheaper, feature stripped sibling of iPhone contradicts with Jobs' vision for iPhone as the best smartphone ever. However steady decline of Apple's market share in the global smartphone shipments led Apple take this extreme step. But they got it all wrong because $549 is not an affordable price for the developing world and Apple can not hope to sell any significant numbers.

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