Last year, Apple fans were surprised when the company announced its release and priced it starting at $329. It’s more higher than the Google Nexus 7 and Amazon Kindle Fire by $100 but still, the sales of the mini is enormous.
According to a study, if Apple will use this premium strategy to produce a much affordable and cheaper iPhone, they could see a dramatic increase of profit.
This week, J.P. Morgan analysts Gokul Hariharan and Mark Moskowitz studied and analyzed the prospects of a much cheaper iPhone. Already been rumored and as what the analysts are anticipating, the Cupertino, California-based company will roll out such device this year in a $350 to $400 price range. Though this price range is still high, they believe that an iPhone under $400 without a contract would be a hit in the market.
According to the analysts, Apple creates a demand when makes a price band. Tablet PC price ranging from $300 to $400 had a low demand but when Apple rolled out the iPad mini, this range became one of the biggest segment in the market. This also made tablet consumers to switch to iPad minis from other brands.
They also argued that if Apple doesn’t make this move, Android devices will outrun them. Android devices are rapidly increasing or demand is getting high in a short period of time. It was also reported that Android greatly increased its share in the market while Apple decreased.
(image via: 9to5mac)