Why apple won’t sell cheap

Those using an Apple phone are much more likely to pay for an app than Android or Windows Phone users.

Apple introduced its latest flagship iPhone, the iPhone 5s. The new iPhone retains the designs and dimensions of last year’s iPhone 5, but adds a faster processor, an improved camera and a new ... more 
Apple introduced its latest flagship iPhone, the iPhone 5s. The new iPhone retains the designs and dimensions of last year’s iPhone 5, but adds a faster processor, an improved camera and a new feature called Touch ID, which allows the owner to secure the iPhone with a fingerprint.
Apple also introduced the cheaper iPhone 5c, available with a plastic backing and in multiple colors. less 
1 / 30
Yahoo India News | Photo by Apple
Wed 11 Sep, 2013 8:30 AM IST

Android rules over nearly 80 per cent of the smartphones being sold now, thanks primarily to the fact that it is available on phones across all price ranges. Everyone thought this pressure would be enough for Apple to start playing the volume game and launch an affordable smartphone.

Some of them are also trying to add brains in the form of phone-like operating systems that open up the entire world of apps on a camera.

But the guys in Cupertino had other ideas. They launched an iPhone 5C as predicted. But the C here did not stand for cheap.

In fact, the phone will be just a tad cheaper than the iPhone 5 which it will replace. That is because Apple now has a new, superior, flagship phone in the iPhone 5S. Actually, except for the iPods, Apple has never been a mass market brand. It has always been elitist, offering its customers a premium experience for the extra that they pay. The premium tag also works wonderfully for Apple’s branding.

For instance, iOS is the most monetised of all mobile platforms.

Those using an Apple phone are much more likely to pay for an app than Android or Windows Phone users.

That is because anyone using an iPhone is coming from a price bracket where they can spend a couple of dollars a day on apps, or songs. You cannot say that of the other platforms. Even when it does not have the volumes of Android, Apple’s monetisation is much more than Google’s platform.

A $ 99 phone would have diluted this brand equity that Apple has so painstakingly built.

It would have sold many more phones at this price point, but without the guarantee that these users would also end up spending their money in purchasing apps online. This services side is a huge part of Apple’s revenue. In India, we can expect the ‘ cheap’ iPhone 5C to sell for anything above ` 35,000 based on present conversion rates. It will be cheaper only if Apple gives a discount.

That seems unlikely at the moment as iPhone 5C is selling for $ 733 in China. For now, volume markets like India and China certainly don’t seem to have caught Apple’s fancy.

Matches

MORE TOP STORIES TODAY

Duminy steals first win for Delhi

Duminy steals first win for Delhi

Furious fifties by Duminy and Dinesh Karthik end a long losing streak for the Daredevils. More »

AB, Parthiv seal Bangalore's second win

AB, Parthiv seal Bangalore's second win

Royal Challengers overcame a stutter to cruise to the small target they were set by Mumbai Indians. More »

Glenn Maxwell carves his parallel universe

Glenn Maxwell carves his parallel universe

Glenn Maxwell seems to project an icy disdain when at the crease. Match situations rarely faze him and the bubble in which he plays excludes everyone … More »

Srinivasan can attend BCCI meeting

Srinivasan can attend BCCI meeting

His status as president of TNCA makes him eligible to attend the Working Committee meeting on Sunday. More »

No way back for Pietersen: ECB

No way back for Pietersen: ECB

Kevin Pietersen's hopes of reviving his international career appeared to end Saturday when ECB managing director Paul Downton said there was 'no way back'… More »

[REWIND] The world record that nearly wasn't

[REWIND] The world record that nearly wasn't

Twenty years ago this week, Brian Lara became Test cricket's highest scorer, but he almost didn't make it. More »

Moores gets second stint as England coach

Moores gets second stint as England coach

In a two-year spell from 2007 to 2009, the 51-year-old Moores led England in seven Test series. More »

Bangladesh senior players to see shrink

Bangladesh senior players to see shrink

Bangladesh's senior players will have three sessions with a psychological skill development coach later this month More »

BCCI is not anybody’s property — Dalmiya

BCCI is not anybody’s property — Dalmiya

Dalmiya feels that Srinivasan’s ‘power hungry’ attitude isn’t helping matters. More »

KP ridicules idea of day-night Tests

KP ridicules idea of day-night Tests

Kevin Pietersen has ridiculed the idea of day-night Test cricket, saying the game would be so different to proper Test cricket that we will need a whole… More »

Rajasthan edge low-scoring thriller

Rajasthan edge low-scoring thriller

The bowlers restricted Hyderabad to 133 for 6 before Rahane and Binny took Rajasthan over the line. More »

Tough for bowlers: Saeed Ajmal

Tough for bowlers: Saeed Ajmal

The 36-year-old believes the T20 format and rule changes in 50-over matches have made a real difference. More »

Maxwell blitz takes Punjab home

Maxwell blitz takes Punjab home

The Kings XI batsman blasted a 43-ball 95 to help his team pull off a massive chase against Chennai Super Kings. More »

BCCI members want independent probe

BCCI members want independent probe

The board members are realising after the Supreme Court's observations that something has to be done — IS Bindra More »

'BCCI lacks leaders to take on Srini'

'BCCI lacks leaders to take on Srini'

Two former BCCI presidents, Shashank Manohar and Jagmohan Dalmiya, have reacted strongly to the news of the BCCI calling an emergent meeting on Sunday… More »

Delhi look for first points against confident Kolkata

Delhi look for first points against confident Kolkata

Preview — The threat of Sunil Narine looms large again. More »

Bangalore vs Mumbai: A battle of the big-hitters

Bangalore vs Mumbai: A battle of the big-hitters

Preview — Given the firepower in both line-ups, Dubai crowd may see another high-scorer More »

Yuvraj tees off to Sharjah's delight

Yuvraj tees off to Sharjah's delight

Yuvraj Singh was hardly convincing to begin with against Delhi, but a big dose of crowd support and a helping of poor bowling meant he had the opportunity… More »

Stressed Trott stands down again

Stressed Trott stands down again

The England and Wales Cricket Board (ECB) on Friday confirmed that batsman Jonathan Trott is to take another break from all cricket with immediate eff… More »

PCB starts another coach hunt

PCB starts another coach hunt

The PCB has decided to not extend the contracts of head coach Moin Khan, fielding coach Shoaib Mohammad and batting consultant Zaheer Abbas, and has invited… More »

Fiery star Stokes bids to curb his temper

Fiery star Stokes bids to curb his temper

England all-rounder Ben Stokes admits he must keep his anger under control if he is to end his international exile. More »

Bangalore's arsenal blazes to victory

Bangalore's arsenal blazes to victory

Yuvraj Singh was back to his best in his first match for Royal Challengers Bangalore. More »

Pakistan cricketers face probe

Pakistan cricketers face probe

Pakistani cricket authorities have launched an investigation after a number of current international stars played in exhibition matches in the United States… More »

BCCI to meet before next court hearing

BCCI to meet before next court hearing

The BCCI will hold an emergent working committee meeting on April 20 to discuss the future course of action with regard to the Supreme Court hearing concerning… More »