Apple Plans To Issue Cheaper Version Of The Iphone
Recently there has been a lot of controversy around the potential release of a cheaper iPhone. Conversations began as a result of plummeting sales figures for the iPhone 5, whereas its South Korean rival, the Samsung Galaxy smart phone, has seen a substantial increase. Not only has this meant that Apple has slashed the number of orders for the phone, they have also seen their shares drop dramatically by 3.57%.
Nothing has been confirmed about the concept yet; but if it was to go ahead, either now or in the future, what effect would this have on the Apple brand?
Apple is undoubtedly known for being a luxury, ahead of the curve brand. Their products are aesthetically pleasing, ergonomically sound and function with the highest technology, so what’s spurred the change? Well, with innovative products comes a price, and everyone knows Apple products aren’t cheap. Due to Apple’s closed platform they do not share their ideas with other manufacturers, unlike their competitors. This means that although Apple products are generally unique, they may not be the absolute best when it comes to functionality. Over the past couple of years Apple’s competitors have stepped up to the table, recognising the iPhone’s immediate flaws and released handsets which now compete directly with the iPhone. This means that Apple, although still extremely desirable due to the strength of the brand, may no longer support the best operating system out there.
Other brands are beginning to use Apple’s misfortune to their advantage, offering customers more for their money. Apple may be considering offering a cheaper alternative to gain back its customer loyalty. Yes, this could bring back customers and will certainly increase Apple’s competiveness in the market place, but what will it do for the brand? By making a cheaper version of the iPhone they could devalue the brand and Apple’s desirability may decrease.
What are your thoughts? Should they bring out a cheaper version of the iPhone or not?