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iPhone Price Reducting And Entering The Low-end Smart Phone Market


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zhuwh
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Dec 1, 2011, 7:30 PM

Post #1 of 1 (390 views)
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"Business Week" online edition point out today, Apple sale iPhone phone (mobile Internet) (mobile Internet) at a reducting price and enter into the market dominated by low-end smart phone. This will attract more new customers and force competitors to lower prices.

Intruduction: "Business Week" online edition point out today, Apple sale iPhone phone (mobile Internet) (mobile Internet) at a reducting price and enter into the market dominated by low-end smart phone. This will attract more new customers and force competitors to lower prices.

Apple's new iPhone and price promotions are not always good news on the wireless industry's competitors.No exception ofthe newest member of the Apple family.This time, Apple lowered the price of iPhone, so that it can heavily erode the section occupied by the low-end smartphones and feature phones. June 8, the U.S. mobile operator AT & T began to launch a iPhone saled $ 99, with biennial contract .

The price cutting will lead the user who never bough the smart mobile phone from considering the price originally to buy.According to results of a survey released by Yankee Group ,in the 1,500 surveyed Americans in Feb,2 this year, 41% of them said they will have to buy smart phones. Industry analysts Qitan • Sharma (Chetan Sharma) thinked that price cutting only may make the the number of iPhone users increased by 10%.

In addition, this strategy also allows Apple into new markets field. Market research firm NPD Group consumer electronics industry analyst Ross Rubin • (Ross Rubin) said: "The most vulnerable phone of iPhone price cutting is the low-end smart phones priced at 100 dollars. "Avian Securities analyst Matt • Thornton (Matt Thornton) thinked that, Samsung, LG, Sony Ericsson, Pantech and other handset makers will face the risk of market share being eroded.

The profits of the handset manufacturer may be reduced same. According to NPD statistics, the first quarter of 2009, the general smart phone price is only only $ 155 after getting the operator subsidies, that was $ 204 the corresponding period last year. Now, the smart phone makers should make the ready for cutting prices by $ 50 again. Sharma said: "It makes competitors face more pressure, and they can only lanch the product with price lower or match the Apple. manufacturer will have to reduce their profits, operators can only launched Service offer matched with AT & T. "
Apple's made a big move recently, in addition to lowering the price of the current generation of iPhones (Wholesale cell phone covers) phones, also issued a new product iPhone 3G S. Allegedly, the phone's data transfer faster.

Apple said, iPhone (cell phone cases wholesale) 3G S mobile Internet speed is twice as fast than the older iPhone (cheap cell phone cases) 3G, it have video recording capabilities, longer battery life. Market research firm RBC Capital Markets analyst Mike • Abramson Rimsky (Mike Abramsky) estimates that the global market share of Apple phone will be up to 2.4% in the fall of 2010 from 1.1% in 2008.

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