Will Apple Be Forced to Launch Cheaper iPhone In Markets Without Carrier Subsidies?
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Will Apple Be Forced to Launch Cheaper iPhone In Markets Without Carrier Subsidies?
The Wall Street Journal has published an interesting article which details the iPhone's weak performance in countries where carriers don't subsidize the sales of handsets.
Although Apple sold a record 37 million iPhones last quarter, most of these sales were in markets like the U.S. and U.K., where carriers offer a subsidy on the device.
Comments
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SO WHAT! IPHONE IS EXPENSIVE BECAUSE IT'S A SUPERIOR PHONE. APPLE WILL NOT DROP PRICES ON NEW HANDSETS.
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How unlikely is that?! Apple hasn't made a cheapy version of it's Mac computer range ever and it's really hard to see them making a cheap version of the iPhone just for the sales. I don't believe Apple works like that... I mean it's roots didn't even begin with sales in mind why should it change now? Although the iPhone is the companies best selling product EVER. Although having said that what's to stop them making an iPhone nano? *That btw is not a cheap iPhone because it's a different product*
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Yes, everything seems to be right, but writer of this article forgot (or didn't know ??!!??) one most important thing. In these countries with high prices for the iPhones all of the iPhones are "unlocked". What that mean? If you buy "unlocked" iPhone you can switch any time your SIM card (module) and you are with different provider or network . This is big advantage for iPhone owners and that's the reason for not subsidizing iPhones by providers. For people traveling for example through the Europe, where density of small countries is high and where you can travel within one day through the few different countries, people usually exchange the SIM card when they cross the borders of the country and they can use different network in country where they momentarily are for much cheeper price then international roaming. In the North America especially US and Canada providers subsidize only "locked" iPhones. What that mean? The iPhone is locked just to specific provider (Tmobile, AT&T, Rogers e.t.c.) and you can't change the SIM for different provider and in case of traveling you have to pay enormous charges for roaming .......... You can still buy (at least in Canada) "unlocked" iPhone in APPLE store, but instead of "subsidized" low price for phone you will pay CAD $ 549.- plus tax for old generation 8GB iPhone 4 and from Cad $ 649.- 16GB to CAD $ 849.- 64GB, plus tax. I just bought my 4S 64GB last December and I paid CAD $ 891.45 incl. tax ............ So nothing is really different between Euro and NA prices if you go "UNLOCKED".Have nice dayGJ
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Apple will never compromise on their profits, the iPhone 4S costs more in India (without subsidy) then a unlocked iPhone 4S in the US.
