Dreaming of iphone? Wake up now!
Apple has made another surprising and may I say confusing move as it slashes the price of iPhone 8GB model by $200. Starting today, mobile users can buy this ultra-hyped phone from $599 to $399.
However, we have to say goodbye to the 4GB model as it will be quickly phased out. At this time, only the remaining stocks are up for grabs.
The whole time the public is raving about this wonderful news, many investors and market analysts are having some problems figuring out the strategic sense of this unforeseen move. There is the marketing icon, Steve Jobs, boasting about their ability to reduce production costs in time for the holidays!
Moreover, there are analysts supporting the strategy as a way to become a legitimate player in the mobile phone category.
Still, the general impression of the financial market is WEAKNESS, sending the company's shares down by 5.1%. It may be an early sign that Apple is falling behind its commitment of selling 10 million iPhones at the end of next year to get 1% share of the global market.
I see this is as an aggressive pre-emptive strike against iPhone-based smartphones that will be launched by other mobile players. By creating a barrier to entry through price reduction, it can easily spoil the strategies of competitors. Then again, there is something really alarming with the timing of implementation…
Via Mobile Whack
September 6th, 2007 at 6:27 am
How about the iTunes and ringtones sells? And the 10% of revenue share in Europe?
I believe that Jobs can make more money with services, rather than selling expensive phones.
September 6th, 2007 at 12:04 pm
I’m amazed that very few are getting why the iPhone HAD to be cut: the iPod Touch, starting at $299 for all the functionality of the iPhone except for the phone (and negligible camera)
How is Apple going to charge a $300 premium for nothing but a phone and camera, then forcing the user to sign a significant contract with AT&T?
File this under “duh.”
September 12th, 2007 at 12:27 am
Hm, don’t understand about what all this noize in mass media. Other communnicators has much more better functionality at all.
September 13th, 2007 at 8:19 pm
Iphone – The Next Chapter
In June and July I gave my view of the then newly released Iphone. In summary, I thought it was a great Ipod and a poor phone. Lousey keyboard, no MMS, no ringtones (until recently) , lower speed data, etc.
It looks like Apple agrees, at least partly.
The introduction of the Iphone-less Ipod (aka the ITouch) is a great addition the the Ipod line. It’s introduction also undercuts the techno sex appeal of the Iphone.
Then, we have the biggest news of the week – the $200 price cut in the Iphone – Wow! Not only was there a price cut, but Steve Jobs (whom I really do respect) tried to spin it as a success story!
If you are selling the hottest gizmo on the block and they are flying of the retail shelves, you do not cut the price.
When demand falls, you cut price 5-10%, not 33%. You cut prices by that amount when you have a potential disaster on your hands. With a user base revolt on their hands, Apple then agrees to rebate all Iphone users $100 worth of Apple credit.
There is a problem in Iphone-land. The stock market also agreed , punishing Apple’s stock with a drop of 12 points in the last two days , a 8% drop in value and a loss of around $10 Billion (with a B!) in market value.
The early adapters gobbled up the hype and the product. The strategy of having the techno elite show off their shiny toys to envious friends who would also rush to buy them did not work. The Iphone marketing virus stopped. Why?
As I predicted the, the phone features on the the Iphone have been panned by pundits and consumers alike. With the bulk of the value in a “cool” Ipod, paying the $50-$60/month to AT&T seems prohibitive.
The mobile phone market was not invented by Apple. The competition is fierce and the price pressure is immense. With the sale of nearly 1 Million Iphones, Apple is a small blip on the marketscape of mobile devices. The Research in Motion Blackberry has over 8 Million consumers. Nokia sells over 100M every three months!
Apple will learn, adapt and come back. The genetic mutation of IPods, mobile phones and online commerce has created the first model of a new species. Like DNA based species, this one will have a learning curve, some painful near death experiences and many natural predators. This is just chapter one of a long novel, enjoy it.
http://ceospeaks.blog.dada.net
September 13th, 2007 at 8:21 pm
Iphone – The Next Chapter
In June and July I gave my view of the then newly released Iphone. In summary, I thought it was a great Ipod and a poor phone. Lousey keyboard, no MMS, no ringtones (until recently) , lower speed data, etc.
It looks like Apple agrees, at least partly.
The introduction of the Iphone-less Ipod (aka the ITouch) is a great addition the the Ipod line. It’s introduction also undercuts the techno sex appeal of the Iphone.
Then, we have the biggest news of the week – the $200 price cut in the Iphone – Wow! Not only was there a price cut, but Steve Jobs (whom I really do respect) tried to spin it as a success story!
If you are selling the hottest gizmo on the block and they are flying of the retail shelves, you do not cut the price.
When demand falls, you cut price 5-10%, not 33%. You cut prices by that amount when you have a potential disaster on your hands. With a user base revolt on their hands, Apple then agrees to rebate all Iphone users $100 worth of Apple credit.
There is a problem in Iphone-land. The stock market also agreed , punishing Apple’s stock with a drop of 12 points in the last two days , a 8% drop in value and a loss of around $10 Billion (with a B!) in market value.
The early adapters gobbled up the hype and the product. The strategy of having the techno elite show off their shiny toys to envious friends who would also rush to buy them did not work. The Iphone marketing virus stopped. Why?
As I predicted the, the phone features on the the Iphone have been panned by pundits and consumers alike. With the bulk of the value in a “cool” Ipod, paying the $50-$60/month to AT&T seems prohibitive.
The mobile phone market was not invented by Apple. The competition is fierce and the price pressure is immense. With the sale of nearly 1 Million Iphones, Apple is a small blip on the marketscape of mobile devices. The Research in Motion Blackberry has over 8 Million consumers. Nokia sells over 100M every three months!
Apple will learn, adapt and come back. The genetic mutation of IPods, mobile phones and online commerce has created the first model of a new species. Like DNA based species, this one will have a learning curve, some painful near death experiences and many natural predators.
This is just chapter one of a long novel, enjoy it.
http://ceospeaks.blog.dada.net
September 17th, 2007 at 4:34 am
checkout this link for cheap Mobile Accessories
September 19th, 2007 at 7:27 pm
Of course, they will earn more money with services and long-year contracts. And of course it is a hype. Who needs the iphone realy? Who needs more than one house or more than one car…? Who needs more than 60 or 80 PS, more than 2000 $ a month, more than two Notebooks?